Financial Times , 1982, UK, English

SSi

Fine British Clothes
for Men

from your Local manshqf

rfW 0f Jr

y May 19 1982

M'

Desigir; Copstru ction
iEr Engsneeci n g Servi ce

■■Sir

No. 28,777 .(ftf Condon and frankfurt ***30p

COWTlWenTAI. SELLING PRICES: AUSTRIA Sch. IS; BELGIUM Rr3Si DENMARK Kr 8.60; FRANCE H:£?0Q; 0; ITa/y l 1.000: NETHERLANDS FI 2.25; NORWAY KrE.OO: PORTUGAL Esc 50; SPAIN Pta 85; SWEDEN Kr 6.00: SWITZERLAND FrZ.0: EIRE 50p: MALTA 30c^

%

— CCTjsias

GENERAL

BUSINESS

Vsj Of-'

EC farm vote i

BY JOHN WYLES AND LARRY KLINGER IN BRUSSELS AND PETER RIDDELL IN LONDON

coalition
may fall
tonight

Premier Mfcnahem Bogin's coali-
tion conld fall in tbe Knesset
tonight when the Israeli tinvern-
meut faces a confidence' vote.

Two members of the. ruling
Likud Party have deserted to
the opposition ' Labour Party,
leaving Likud with 59 of the
120 seats.

The Government's fate
depends on two small indepen-
dent parties, who were being
wooed by the coalition and the
-opposition. Back Page-

N-freeze rejected

Tbe Reagan . Administration
dismissed a proposal by Soviet
President Brezhnev for an im-
mediate freeze on strategic
nuclear weapons because it
would leave the U.S. at a disad-
vantage. Page 5 .

Haig admission

Economic difficulties in the
U.S. made it hard , to increase
military aid to Portugal, U.S.
Secretary of State Alexander
Haig said. Portugal said aid
was too meagre.

Czechs in hiding

Nine Czech tourists were hiding
in Scotland last night after
leaving their ship. The Estonia,
a Soviet cruise liner. They are
seeking political asylum; '

Shirley’s move

Shirley Williams agreed to give
Dr David Owen a dear run to
challenge Roy Jenkins -for the
SDP leadership; She said she
would probably si and for party
President. Page 16 ■

Election yipfence

Fourteen was. tilled' and 13
wounded Jin political violence
connected with Monday's elec-
tions in the Philippines. '

Zimbabwe plot -

Four white Zimbabweans were
jailed for a total of 25 years
for plotting against the
Government.

Uganda killings

Men dressed in Uganda Army
uniforms shot dead five, includ-
ing a boy of eight, in a looting
spree.

Papal pretender

Villagers mobbed a right-wing
Roman Catholic, cleric at St
Teresa of Avila's shrine. Spain,
after he declared the church in
heresy and proclaimed himself
Pope Clement.

Italian vote

Italy’s Cabinet decided to call
for votes of confidence to push
through measures aimed- at pre-
venting the holding of a
referendum on severance pay-
ments. Page 3

Saudi beheaded

A Saudi Arabian was beheaded
after being convicted of
murdering another Saudi over
a land dispute in the eastern
town, of Qulwa. -- .

Appeal dismissed

An appeal by singer Dorothy
Squires over a £10,000 slander
damages award against her was
dismissed by the Appeal Court.

Golden oldies

After 17 years research musi-
cologist '.Ye Dong L deciphered
priceless, ‘ ; ancient Chinese
music from the Tang Dynasty,
the golden age of Chinese
culture,, into modern scores.

Briefly *.*«.-
Prince JBdward tackled the
Royal Marines' assault and
tarzan_ courses

Quads born to Essex woman .
Susan Ppdley; 28, are doing
weH.

England cricketer Ian Botham
wants to. try- rally driving.
Yugoslav Mileva Sunjevaric
died in Serbia aged. 117.

Dollar

firmer;

sterling

• DOLLAR closed slightly
firmer in London at DM &315
(DM 2.3015), having touched a
peak of DM 233 earlier in the
day. It rose to SwFr 1.968
(SwFr 1.954), FFr 6.0125 (FFr
5.99) and Y236.9 (Y236.6). Its
trade-weighted index was 1133
(112.6). Page 36

0 STERLING fell 50 points on
the day to close in London at
91314. It rose to DM 42
(DM 4.19). FFr 10.905 (FFr
10295), SwFr 3.5725-. (SwFr
3.5575). but fell to Y430
(Y430-5). Ks trade-weighted,
index was 90 (902). Page 3.6

O GOLD fell 90.75 in London 1
to $33725. In New York the |
Comrx May close was 93402
($334.6). Page 27

0 EQUITIES trading was res-
trained with the FT 30-share
index dosing 3.4 tower set 572.4,
for a two-day drop of 182.
Page 31

9 GILTS: the Government
Securities Index fell 027 to
69.07. Page 31 .

*» WALL STREET was 3.43
down at 84129 near the close.
Page 28

0 TOKYO share prices fell
sharply over a wide front after
yesterday's rally, with sentiment
depressed by sharp losses on

BRITISH POLICY in the EEC
suffered a historic setback
yesterday, when seven other
member states abandoned a
16-year-old tradition of approv-
ing major issues by unanimous
voting and over-rode the UK’s
attempt to block a 10.7 per cent
rise in community farm prices.

"'This is a sad and damaging
day for tbe Comunity's history."
complained a sombre Mr peter
Walker, who wanted that his
fellow EEC Agriculture • Mini-
sters would come to regret their
actions.

For four hours yesterday he
s.at in furious impotence and
watched the British veto
crumble as ail other member
slates except Greece and Den-
mark voted through 62 regula-
tions- implementing the farm

price package. ■

Yesterday's humbling of the
UK robs the British Govern-
ment of its strongest weapon
for forcing the other Nine to
agree a reduction in Britain's
contributions to the EEC budget
this year.

Paradoxically, it sparked
some optimism that, having
savoured their farm price
victory, other member states
might be more ready to com-
promise on the budget issues in
negotiations next week.

But this was not enough to
dispel the sense that Britain
was passing through the gravest
crisis in its troubled nine years
o<f EEC membership.

Rebuff seemed to pile on
■rebuff yesterday. Mr Francis
Pym, the British Foreign

Secretary, had been unable
earlier to persuade Mr Leo
Tindemans. the Belgian Presi-
dent of the EEC Council of
Ministers, to call an urgent

' Farm vote heralds profound
change in European Com-
munity, Page 3
Editorial Comment, Page 20
Farm price vote appals con-
sumers, Page 27

meeting of Foreign Ministers
to try to avert the confrontation.

Britain's reaction to the
defeat, which may well extend
to withholding part of its con-
tributions to the EEC. will be
decided by the Cabinet in the
next few days.

In London, Mrs Thatcher was
said to be determined not to

!make any concessions on the
budgetary front. .

During Prime Minister's
questions in the House of
Commons, she said the majority
vote was "quite without pre-
cedent. It raises very serious
issues and we shall be consider-
ing what to do under the new
circumstances.”

Senior British Ministers were
keen not to /rule out any option
but they wanted first to con-
sider the implications and to
take stock after bearing a report
from Mr Walker, who is
expected to make a statement
to the Commons this afternoon.

On the Labour side. Mr Peter
Shore. “ shadow " Chancellor,
described the decision as “the
most serious development since
Britain joined the EEC.” He

said the implications of
majority voting undermined the
principles on which Britain had
entered the EEC. nnd suggested
that the UK should immediately
halt its flow of money .to the
Community.

Many British Ministers may
.feel victims of unprecedented
political aggression which is the
more bitter because it follows
Monday's grudging and partial
renewal for only one week of
the Community's sanctions
against Argentina.

But as Mr Walker stressed
yesterday. the procedures
adopted at the Brussels meeting
have important implications for
the Community, because t':ey
overturn working practices
which have been operating for
16 years. .

He was referring to ibe re-
fusal of the seven, member
states to- let him invoke tbe
so called “Luxembourg
compromise. "

While lacking any legal
status, this has since 3966 -given
any member state the right to
insist on a unanimous vote on
community policies when it
believes important national
interests are at stake.

The compromise was pari o f
- the basis on which Britain,
joined the Community. Mr
Walker said. Its abandonment
had “created a - major crisis in
the Community and a major
•Jack of confidence ” ' in new
member countries.

Greece and Denmark joined
Britain in refusin'* to take part
Continued on Back Page

Thatcher gloomy on Falklands talks

BY PETER RIDDELL IN LONDON AND PAUL BETTS IN NEW YORK

3000r—

78O0(- -ft

,ejV;

740o|~ *—

JAPAN

W& m
Jhm ■

THE Prime Minister and Mr
Francis Pym. the Foreign Secre-
tary, were both gloomy yester-
day about the chances ef a
diplomatic solution to the Falk-
lands crisis, as expectations at
Westminster grew that the
step-by-step military pressure
against Argentina would in-
tensify: in the next few days.

At the UN in New York,
peace talks were suspended for
a day to give Argentina time
to consider Britain's latest and
possibly final proposals for a
diplomatic solution, Sr Javier
Peres, de Cuellar, ihe UN
Secretary General, said he ex-
pected to see both British and
Argentine envoys again this
morning. He said he might be
in a position tomorrow to say
“whether we have achieved a
real peaceful solution."

During Prime Minister's
Questions in the Commons, Mrs
Thatcher, said Britain was
facing, a critical week which
would determine whether it was

possible to reach a peaceful
settlement. She accused the
Argentine junta of “ really try-
ing to spin out negotiations,"
and said Britain could not go
on accepting such prevarication.

Mrs Thatcher made it clear
there were principles on which

Soviet Union cheers on side-
lines, Page 4

Falklands decision (his
week, Thatcher says. Page 16
Appeasement not unacceptable.

Page 21

Britain could not compromise.
"There remain substantial diffi-
culties. I believe we shall know
within the next day or two
whether an agreement is
attainable."

Later, at a private meeting
of the Tory backbench foreign
affairs committee, Mr Pym
apparently said he thought a
negotiated setlement was very
unlikely. One MP reported that
Mr Pym had rated the chances

of such on outcome as only
3 or 4 per cent

The tough stance taken by
Ministers in recent days has
reassured Tory ring-wing critics
who were afraid of too many
concessions to the Argentines.
There was apparently general
support for Mr Pym’s stance at
last night's meeting.

An emergency Commons
debate will be held tomorrow,
and officials expect that Mrs
Thatcher will then be in a posi-
tion to discuss the outcome of
ihe UN negotiations and to give
details of the positions taken
by the UK and by Argentina.

Some MPs suspect that a
decision to intensify military
pressure may by then have
been taken.'

In the Commons Mrs Thatcher
stressed that so far no military
option had been closed or held
up by negotiations, nor would
such options be delayed' in the
days ahead.

The debate goes only part

of the way towards meeting the
request of Mr Michael Foot, the
Labour leader, for the Commons
to hear and judge the result*
of the UN talks before any
decision on military' escalation
was made. While the first part
of the request is being met, the
Prime Minister made it clear
that no military action could be
held up by the Commons debate.

“To consult MPs in the House
about when Britain intended to
take action would ♦rive notice to
the invaders and that would be
stunid as w*»H as totally unjust
to the people whom w** intend
to fight for."

“it was dear yesterday that
Labour will press strongly in
see whether thereare. or ever
have been, any chances of
reaching a negotiated solution.
Mr Foot said there were a num-
ber of imDortant questions to He
clarified, for examole, about the
Peruvian terms for a settlement
and about how far the Argentine
Continued on Back Page

Blockade, local actions and invasion considered

V-* t-rr- Htft

BY BftH&ET BLOOM, DEFENCE CORRESPONDENT

!i__U

1 . JAN FEB MAR APR. WSf I
■ -1982 - ; |

.Wall Street overnight and the'
yen's latest setback against the
dollar The market average lost
52.33 to close at 7,567.06 on
light volume of 260m shares.
Page 28

0 TWO BRITISH companies
signed contracts worth more
than £110m for work on a large
Indonesian ■ hydroelectric pro-
ject. BackPage

0 BRITISH COMP AMY estab-
lished : that corrtspondence
between a company and its
external legal advisers cannot
be seized by EEC Commission
inspectors. Page 7

9 AMERICAN EXPRESS
launched a direct access service
for flight information in part-
nership with Telecom’s Prestel
' computer-controlled television
information service, and the
British Airports Authority.
Page 7

0 BRITISH TELECOM sub-!
mined proposals to the Govern-
ment for a cable, network to
provide a foundation for infor-
mation technology. Bads Page .

0 BUILDING SOCIETIES’
method of electing directors
was criticised by Chancellor Sir
Geoffrey . Howe; Back Page.
Abbey National links -with Co-
op Bank. Back Page

0 INDUSTRIAL 'OUTPUT. Im-
proved by about one per cent
in February and 'March, com-
pared with the depressed level \
of activity at the turn of the
year. Back Page

0 CIVIL ’ SERVICE union
leaders expect pay negotiations
in the coming year to fragment
into- group by group bargaining.
Page 10 .

0 BUNZL, the paper and
packaging group, is to continue ,
with its -£13 An bid for security
printer Benrose Corporation. |
despite the. failure of a “dawn
raid - " on Benrose shares. Page
34

O LLOYDS BANK International
announced pre-tax profits of
£ 52.7m ( £50.6m) for the six
months to the end of March.
Page 22

BRITAIN’S naval task force
lias still not been ordered to
t- iawds . Falkland TSlands -
although the balance of military
opinion has shifted to .favour
this action rather than mainten-
ance of a long blockade.

. Senior Ministers are believed
to be weighing the advantages
of a rapid invasion designed to
repossess the islands against
more localised military action. -
‘ Local action, such as that on
Pebble Island at the weekend,
would be designed primarily to
harass Argentine troops on the
islands and to undermine their
morale.

Yesterday defence sources
suggested that even if the
United Nations’ initiative- to
solve the conflict broke down
today or .tomorrow, the soften-

ing-up- process represenleA, by
the . PehJjJe. Island .action could
continue for some time -

Marine . • commandos . : . were '
landed on Pebble Island, . one
of the Falklands group, and.
supported by . heavy' naval
bombardment, destroyed 11 air-
craft on the island’s smaU grass
airstrip. Argentine casualties
were assumed, though no details
have been given by either ride.

British -Ministers feel ithat
they, the defence chiefs and the
British commander in the South
Atlantic have a delicate judg-
ment to make on the -best
moment to move, if it is decided
the islands must be repossessed
militarily.

In tbe balance are. on tbe
one hand, the atbition caused

. FALKLANDS - WEATHER:
Wind NW t /Foree. 5-0 (20-25
knots): 10ft seas-. Cloudy :
with showers. Tenip low- to
mfd-40fl F. OUTLOOK: Wind
W. Force 6 (25 knots).

Cloudy, some showers. Cooler.

to the Royal Navy by a long
period -aa. sea and highly
inclement weather, which have
an impact on men and machines,
and, on the other, action short
of invasion which could further
limit supplies and weaken the
Argentine garrison's resolve to
fight.

Ministers were encouraged
by success at Pebble Island,
where British troops did not
meet as much resistance as had
been feared.

^jFor-tiie-tinle-tteiiig. however,
they appear to believe more
action like PebWe Island may-
be preferable to an immediate
invasion. - They argue that
fewer casualties might ultf-*
mately result than from such
a strategy.

They are reported to be con-
fident they can control the
deepening conflict in that way.

A similar confidence, show-
ing a hardening military stand,
has appeared in the public
statements of senior Argentine
leaders over the past few days.
Brigadier Basilfo Lami Dozo.
commanderon-chief of the
Argentine air force and a
member of the three-man mili-
tary junta, has spoken of
making a massive attack on the
Continued on Back Page

Wall Street shocked
by interest default

BY DAVID LASCELLES AND RICHARD LAMBERT IN MEW YORK

THE FAILURE of a Wall Street to the affair, the firm informed
securities firm to make a SI 60m Chase Manhattan on Monday
(fSSm) interest pavmenl to that at would not be able to
Chase Manhattan Bank sent make the $160m payment. Which
shock waves through Wail represented interest it had
Street vesterday and triggered .earned on Che borrowed securi-
fears of major market disrup- ties and owed to their original
tion. owners.

There were urgent meetings Chase Manhattan is said to
nf U.S. banks and brokerage have tried and failed to organise
firms, while the Federal Reser*f a rescue late on Monday night
look immediate steps — appar- [ 0 avoid disrupting the financial
ently successful— to calm the markets - yesterday. It was un-
markets by supplying them with willing to make the payments
large quantities of funds. It on Dfysdale’s behalf. Another
said from Washington it had large New York bank, which
been advised of the problem and f 0um j itself in the same position
was watching developments as chase, did. it is understood,
closely. agree to make the payments.

The firm at the centre of the _ . . w « tIwt

crisis is DrysdaJe Government Several major Wall buwt

Securities, a recently formed J/ ms ^7 1 ? clut ^ Ilfi
trading outfit which had bor- Mernll Lynch— said that »far
rowed substantial amount of as they were concerned Chase
government securities from fin- was tbe principal m the ttufr
ancial institutions to take a action and they J wuM press
“short" position in the bond their claim against the bank,
market. . Reaction on Wall Street yes-

News of the crisis depressed terday was one of shock at the
bond prices and pulled down size of the sums involved. An
bank stocks on the Stock interest payment of 9160m is
Exchange. However. . the . full -lingo, even by -U.S: standards,
ramific&f logs -were*, still unclear and traders in the financial
last night, and in the absence markets estimated that Drys-
of hard information. Wall dale’s bond borrowings were at
Street was awash with rumours least KJ.obn. possibly as much
of billions of dollars worth of as $4bn. One likened the size
government securities being and impact of the affair to the
involved. Hunt silver crisis of 1980 in

The first hint of trouble came which billions of dollars worth
yesterday morning when Chase of precious metals were in-

Manh-ittan

a volved.

securities firm, which it did not It was not clear whether

name, had failed to pay it Drysdale was preparing to go

$160!n in interest on govern- into liquidation.

ment securities. Chase was -

forced to make the announce- K . w _ .

ment because »t was collecting r ,n New vorK

the interest on behalf of sevpra-1 i .. I ..

other securities firms vj-hich had : }

begun to agitate for their ' :

money | I

Drvwialc pnooimtered finan- SDOt U-BOM-GOBO; si.ai 9 ao:j 30

■ raeoumereo nnan t month ' 0 .26-o.3i pm 0.300^4 pm

cial difficulties a t the end of last 3 month* o.64-o.6a pm ! 0.75 o.ao pm

week. According to people close 12 months 1.86-2.05 pm 1 3.10-2.20 P m

GEC interest in AEG offshoot

- BY JASON. CRISP

GEC LOOKS set to take a sub-
stantial stake in a major sub-
sidiary of AEG-Telefunken, the
deeply troubled West German
electrical company, though AEG
described German newspaper
reports on the deal as specula-
tive yesterday and GEC refused
to comment.

The subsidiary, . AEG-
- Telefunken Anl agentechni k.
accounts for about 40 per cent
of the parent company’s turn-
over.

.It is a substantial force in
power engineering- and in-
dustrial systems, -and would
complement GEC's own activi-
ties in these fields. ■

The two companies are also
thought to be about to enter
substantial ' co-operation agree-
ments. They are believed
already to have made joint. bids
for several large contracts in
Gennany, but with little success
to date. . ;

In tbe City, analysts said that
GEC. woold be unlikely to enter
an agreement - which did not
give it full management control.

The deal would represent
GEC's first major acquisition

since it bought Picker, the U.S.
medical electronics company, in
December 1980.'

Last week AEG-Telefunken
said it expected to have an
operating loss of DM 400m-
DM 450m this year.

The 24-bank consortium which
has had to rescue the company
on several occasions in the past
is to meet shortly to discuss
short-term measures to help, the
company', including further
loan write-offs.

Its- major problems are in the
consumer electronics side,
particularly television and audio
products.

Tbe Amlapehteehnik sub-
sidiary is a licensee for
turbines produced by General
Electric of the U.S-, which has
to connection with its English
namesake, and is a sub-con-
tractor for the Russia-to-Europe
natural gas pipeline. It has sub-
stantial business in computer-
ised process control systems.

• It is involved in power distri-
bution, factory automation,
motors, generators and turbine
systems.

GEC is thought to have been

— CONTENTS —

interested in acquiring AEG-
Telefunken or parts of it for
some years; Lord Weinstock.
chief executive, is thought to
have first started talking to the
company in 1974, but to have
been rebuffed by the Bonn Gov-
ernment.

- In recent years, AEG-Tele-
funken has sold several subsidi-
aries entirely, and part of
others.

At the end of 1980 it sold
Hartmann and Braun, an
important manufacturer of elec-
trical measurfng and control
equipment. Last year it pulled
out of Videoeolor, a joint ven-
ture with Thorason-Brandt
which makes television tubes.

Later last year it entered a
complex joint venture on the
telecommunications side with
Robert Bosch and Mannesmann.
It reduced its holding in its
telecommunications subsidiary
to 51 per cenL

In a related move three
German banks and Bosch took
a 49 per cent stake in Olympia,
its money-losing subsidiary
making typewriters and office
equipment.

CHIEF PRICE CHANGES VESTERDAY

f Prices in pence unless otherwise indicated)

WSES Automotive .PK

Bemrose + |3 Blue Circle ..

Grindlays — *3S + * Bunzl , -

Hinton (A) + «_ ESI London

ML HJdgs •+ 15. Ferranti

Mlnet t G3axo

S and U Stores 34 + 0 Grand Met ..

- 24 + 5

Savoy A 214 + 10

Tyson Cntrctrs ...... 4S + 6

Kinross ■ g7 I'.g-

• falls

Exchqr 15pe 1997... £106 i - J

ANZ 230 — 10

indicated)

Automotive .Prds ... 52- 4

Blue Circle - 480 — 14

Bunzl ISO — 8.

JSSI London 282 - 13

Ferranti 707 - 1- 11

Glaxo ...' 670 — 7

Grand Met 212 — 6

Heath (C. E.) S32 - 6

Lloyds Bank 395 - 10
PilJcingtoa Bros...... 235 - 13

Unilever 596 - 14

Woiseley-Hughes .... 368 - T

Cheynne Res ...... 70 — 20

Sceptre Res . — .... ,260 -"27

Videodiscs: gambling for high

stakes , 20

Europe’s peace movement: the spirit

spreads East 21

The FaUdaiids; appeasement is not

unacceptable polity 21

Tedinology: India's plans for soft-
ware 12

Energy: FLAGS — a small boost for

North Sea gas gathering 13

Commercial law: guarantor’s liability

for extended facility 17

Gardens today: Chelsea bouquets and

brickbrats 17

Management: Fidelity Radio back from

the brink IS

Editorial comment: upheaval in the

EEC 20

Textile, machinery: Platt Stone Lowell
reborn into a tough world 20

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Apnointmantn 31

Art* 19

Base Rita* 29

Ccmmadlttot 27

CeropwilM UK 2224,26
Crossword 19

Entertain. Guide ... 19

European tftwi ... 2, 3

Euromarkets 32

EuropMfl Option* 2*

FT Actuaries 31

Foreign Exchanges 36

Gold Markets ... ■ TO Sham Irrtormaton 3S 3S

Inti. Companies 32, 34. 3S Stock Markets:

LaadarPag* 20 London 31

Letters 21 Wall Street 28

Lex 40 Bourses 28

London Options ... 2* Technology 12

Manacnmant 1* TV and Radio .... 17

Men It Matters ... 20 UK New*:

MVi*ng 26 - General 7-9

Mone« Markets . . 36 Labour 10

OwonuuM News ... 4 Un’t Trust*:

P*rt****em 1® Authorised 36

Racing 17 Others 37

F or latest Share Index, phone 01-246 8026

Weather r. 40

World Trade Newe S

INTERIM STATEMENT

ANZ Bank 26

ANNUAL STATEMENTS
Anglo An». Co*I ... 9

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C. £. Heath 22.

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Financial Times Wednesday' May 19 1982

GDP forecast
to fall again

in W. Germany

Conoco to
help
develop
‘gold block’

EUROPEAN NEWS

Giles Merritt examines the independent steelworks’ case against the- EEC’s crisis regime

Private steel looks to shrug off shackles

BY LESLIE COLITT IN BERLIN

WEST GERMANY'S gross
domestic product in real terms,
which fell by 0.1 per cent in
the first quarter of this year,
compared with the same period
in 1981, is believed likely to
continue its decline in the
current quarter, according to

• DIW, the West German
Institute of Economic Research.
This would mean a continued

* rise of seasonally adjusted
unemployment which, increased
by 40,000 last month to 1.7m,

The West Berlin based insti-
r tute said incoming orders to
: ‘ West German industry from
: abroad indicate there is likely
to be another slight fall in
■=? exports of goods. Current
: orders for the primary, pro-
Si ducer and consumer goods
"Hi sectors have risen marginally.

but orders for the capital goods
'j sector are sharply down.

The West German export
; boom cooled considerably in the
first quarter, as real exports
failed to grow for the first time
v since autumn 1980.
j Private consumption based on
the latest retail statistics has
stabilised on a low level and
f DRV pointed out that private

consumption in real terms in
the second quarter is likely to
rise slightly, but will still be
considerably lower than a year
ago.

Real private consumption
during the first quarter fell "as
never before” in ihe post-war
period, according to the insti-
tute. Savings deposits again
expanded at a high rate.

The reluctance of the West
German consumer to spend was
especially marked in falling
sales of household appliances,
cars and home furnishings, but
also in clothing, shoes and
leisure time items. Only spend-
ing on food and drink showed
an increase in real- terms.

The institute’s analysis
Showed that in the first quarter
of this year West Germany's
gross national product in real
terms fell by l per cent over
the previous quarter and by 0.5
per cent over the same period
last year. Investments in plant
and equipment did not recover
in the first quarter, DIW said,
and. after marked destocking
since last summer, storks again
rose to the high level of last
spring.

Last-minute hitch delays
U.S.-Spain defence pact

MADRID — Last-minute diffi-
*■ cutties over a new’ defence treaty
between Spain and Dbe U.S.
forced Mr Alexander Haig. U.S.

. Secretary of Stale, to cancel a
scheduled visit to the Spanish
capital yesterday, spokesmen for
both governments said.

A Spanish Foreign Ministry
spokesman declined to give de-
tails of the difficulties, but de-
nied Press reports which quoted
officials as saying the problems
centred on U S. use of the bases
- for operations with which Spain
might not agree.

The officials are reported to
have said that the Falklands
crisis, in which Spain has been
tom between conflicting loyal-
• "fies, has raised the question of
how Madrid would react in a
similar situation that might in-
volve U.S. operations against a
country with which Spain was
friendly.

Both sides are tryingurgcirtiy

tn produce agreement on the
new defence treaty by Friday,
when an extension to the present
treaty expires.

The treaty was last renewed
in 1976, just after Gen. Fran-
cisco Franco died, and Spanish
officials say any new agreement
must take account of Spain’s
status as a democracy and as a
future member of Nato and the
European Economic Community.

Spain and the U.S. have been
linked since 1953 by the defence
and co-operation agreement,
which gives U.S. forces the use
of four bases here in exchange
for grants and credits to -Spain.

Washington has proposed
tripling its total aid package to
about $450m a year, a move
which a U.S. embassy spokesman
here called " an indication of
our good faith." Such aid is
• subject ■ to congressional
approval

By Fay Gjester in Oslo

CONOCO. THE U.S. oil com-
pany, has agreed to act as
technical assistant in develop-
ing Norway’s so-called
“ golden block " in the North
Sea, In return for guaranteed
deliveries of Norwegian oil.
Ownership slakes In the pro-
mising oil and gas field have
been reserved for Norwegian
companies only.

The deal, between Conoco
and Statoil, the Norwegian
state oil company, concerns
block 34/10 — nicknamed the
“ golden block ” because of its
extensive reserves. It marks
a turning point in the history
of Norway's offshore oil and
gas Industry, because this is
the first time that a foreign
oil company has been willing
to lend its know-how to the
development of a Norwegian
field in which it is not a co-
Uccnsee. Partners on the
block are Statoil, acting as
operator, Norsk Hydro and
Saga Petroleum.

Under the .agreement.
Conoco will make personnel
available, as needed, up to a
maximum of 75 man-years,
over a 10 year period, and
Statoil will be able to send
its employees to Conoco for
on-the-job training. Payment
will be on a pro rata basis.

In return, Statoil has
undertaken to supply the U.S.
company with part of Us
crude oil output, starting
this autumn. For these
supplies. Conoco will pay
Statoii's market price — which
normally closely follows that
charged by the British
National Oil Corporation

Initially, the oil will come
from Statoii's share of the
SlaLfjord field output. When
the " golden block ” comes on
stream, in 19S7. Conoco will
be entitled to buy 10 per cent
of Statoii's net share of pro-
duction. throughout the life
of fZze field.

It is estimated here that the
total value nf these purchases
could reach around NKr lObn
(£92 7m) making this
probably the biggest oil sale
ever arranged in Norway.

TWO EXECUTIVES represent-
ing Europe's independent steel-
makers, mingled with the
several hundred journalists en-
camped in the EEC Council of
Ministers building in Brussels.
Like unbidden guests at a wake,
the Italian expert from the
European Independent Steel-
works Association (EISA) and
his German colleague main-
tained their vigil over the out-
come of The meeting of the In-
dustry Ministers’ Council on
May 4.

Their particular interest in
the ministerial talks on an ex-
tension into 1983 of the EEC's
steel crisis regime came about as
a result of a European Commis-
sion proposal to include the wire
rod that is produced by many of
the Community’s independent
steelmakers in the categories
where output is being pegged by
tough mandatory controls. In
the event, a decision on the de-
tails of the regime’s future
eluded the ministers, who in-
stead called a further meeting
on May 26 .

But the EISA observers’ in-
terest in the steel prices and
production regime that chiefly
governs the giant steel pro-
ducers grouped in Eurofer, the
Community’s steel ■** club,” now-
adays goes a good deal further
than the fate of wire rod. The
independents’ year-old pressure

group is currently launching a
determined attack on the iniqui-
ties of the regime, and its chief
target is the “unfair" level of
subsidies still being funnelled
to' the mainly state-owned giants
of the steel industry.

The underlying message of
the independents -Is that even
though the 70 or so member
companies of EISA are most of
■them making profits again this
year, they too now need subsi-
dising. . To back up its point,
EISA recently prepared a report
on how official steel policies last
year distorted ■ the competition
at the independents' expense.

At first sight, a plea by
independent European steel-
makers that they, too, should be
granted, financial support looks
to be something that EEC
governments should stoutly
resist. However, EISA's case is
that the private sector of the
steel industry is being strangled
bv the competitive distortions
resulting from the subsidies
paid to the Eurofer producers.

EISA's report on lbe Eurofer
steelmakers 3 financial needs,
and the effects of their sub-
sidies on the steel industry as a
whole, makes five fundamental
points.

The first is that tbe Eurofer
steelmakers-^ the EEC's dozen
or so nationalised or generally
state-supported major groups —

last year chalked up losses that,
at an average $20 (£11) a tonne,
totalled $2bn. The effects of
those losses lead on. to EISA’s
next points that:

• . Governments*- “ topping-tip "
of the Eurofer producers' losses
through contributions to their

while ttie “ mono-producers " in
EISA are increasingly being
restricted by thetr'. financial
problems to the less attractive
sectors" of the steel industry.
EISA claims that its members’
inability to offset losses through
subsidised diversification now

The Commtinity r s steel crisis regime is currently
■under attack from the European Independent
Steelworks Association, particularly over the
“ unfair ” level of subsidies still being funnelled
to the mainly state-owned giants' of the steel
industry. At the same time, the association is
looking for financial support for its members to
maintain a healthy private sector in the face of
government-sponsored distortions in competi-
tion.

equity bases is handicapping the
independents' financial perfor-
mance vis ft nis their Eurofer
competitor- The argument is
that, although the EISA steel-
makers' output costs are 30 to
40 per cent lower, the equity
injections enjoyed -by ..the
Eurofer producers cut debt ser-
vicing costs and sb reduce their
net financial losses.

• Tbe Eurofer companies are
able to use their subsidies to
diversify into other ..products, •

adds up to' a S330m-a-year
financial burden — a figure that
represents, about a sixth of the
independents* turnovers.

• The subsidies and state-
guaranteed loans to the Eurofer
companies are' " crowding out"
the steel independents from the
capital markets. EISA calcu-
lates that the interest rates
available to. its members is
therefore 2 per cent higher at
present tiian would otherwise
.have been the case. . .

• The artificially higher prices
and lower ' production levels
dictated by the EEC steel
rdgime, EISA , warns, means a
$lJ?bri “ social cost ” ' to the
Community as a result of
reduced economic efficiency.

These EISA complaints are,
if anything, compounded by the
fact that the Eurofer steel
giants; together with their
parent governments, have so fur
shown few signs of taking the
radical restructuring measures
needed to reduce the EEC steel
Industry’s 45 per , cent over-
capacity— which the regime was
intended to encourage.

Rather than call for lbe aboli-
tion of the regime, though, or
of the state aids and subsidies
that EEC governments have
agreed will continue to be
permitted until 1985, EISA
lobbyists are instead urging
modifications that they claim
will improve the' steel regime.

.They believe that the Euro-
pean. Commission's powers over
steel should be increased to
cover all crude steel output,
rather than the present con-
trolled categories accounting
for some 70 per, cent of steel
products.

The EISA independents say
that they now need fiscal, if
not cash, aids id re-equip their
plant and remain highly com-
petitive. " "

Finnish unemployed

Finland’s unemployment
totalled 135,900 or 5.7 per cent
.of the work-force in April,
down by 6,700 from March but
up by 23,000 from a year
earlier, the Labour Ministry
said yesterday. AP reports
from Helsinki.

Gomulka foresaw need to crush Solidarity

BY CHRISTOPHER ROBIN SKI IN WARSAW

Mr Gomulka . . . .now 77 and
ailing

MR WLADYSLAW GOMULKA.
the Polish Communist Party
leader who fell from power in
-the wake -qf working class
demonstrations in December
1970. never doubted that the
authorities would use force to
crush the Solidarity union
movement.

This emerges from an. article
based on conversations with Mr
Gomulka's colleagues published
in .a Cracow-based monthly
publication.

The former leader is now 77
years old and seriously ill. He
has been very much in the back-
ground since 1970 and has
spent the intervening years
following current developments
and writing his memoirs.

The picture which .emerges
from the article is of a man
quite prepared to order the use
of force to keep in power a
Communist party which he was
well aware was in a minority
and unpopular. But he was also
aware of., the limits of that
power!' w&idb meant that he

respected the position of the
Roman Catholic Church and of
the private fanning sector.

Mr Gomulka also stuck closely
to the Soviet Union in hiS:
foreign policy but he jealously
defended his right to take
decisions on internal matters.
According to the article, he has
never doubted he ' was right to
give the order to fire on.
demonstrating workers in
1970.

He regarded the rise of soli-
darity as “counter revolution''
and saw no chance that the prob- .
lem might he resolved other
than by force. But be was afraid
that 44 external force might come
into play,'* tbe article says In a
reference to the Warsaw Pact..

It confirms, however, that Mr -
Gomulka urged the Soviet Union
to invade Czechoslovakia in
196S. * 4 He urged it strongly. He
thought that the situation was
developing in the wrong direc-
tion and that- there was. no
other way. ... He was afraid
that it would spread to Poland

and then the whole thing would
become more serious."

Mr Gomulka came to power m

1956 on a wave of popular en-
thusiasm when people believed

tirusiasm when people believed
that he would continue with the
democraiisation of post-Stalinlst
Poland. The article explains,
however, that “he was deeply
convinced that the party could
not run the country by demo-
cratic means because of its lack,
of support.”

He knew in 1956 that his sup-
port “ would pass ** and this is
why he engineered the retreat
from the democratic ghins of
that year—" a retreat for which
he alone was responsible.”

• Conscripts demobilised this
autumn are to be given preferen-
tial treatment, if they apply to
go to university. The soldiers
are lo be awarded three addi-
tional points to those they gain
in entrance exams. Under the
points system, the children of
working class, .and peasant
families are given five bonus
points over their examination

results to even out their chances
of entry.

Also, soldiers who passed
exams to university before their
military service but failed to
gain entry because of a lack of
places, arc also to be given
priority.

• Representatives of East

Germany and Poland opened
talks in East Berlin yesterday
to explore ways of expanding
economic co-operation between
the states, AP reports from
Berlin.

The official East German
news agency, ADN, said the
ISth session of the “Common
Economic . Committee GDR-
Poland" would be discussing
41 further steps in the develop-
ment of economic co-operation
and the mutual exchange of
.goods.** .

FINANCIAL TIMES, oublishod daily '
eacapt . Sundays and holidays. U.S. 1 ■
subscription rates $365.00 per annum. j
Sacortd Class’ postage . paid at Nnw !
York. N.y., and at adtkiiona! mailing
centres, - - ■

-y-

-Finaiielal Times Wednesday. May.. 19 1982

C.

V-.'i** ,-A.

>. •f:

EUROPEAN NEWS

Farm vote heralds profound change in European Community

EXTRAORDINARY move yes-
terday by other' European Com-
munity member states to over-
ride the British veto and to push
through farm price rises on the
basis of majority vote, if ulti-
mately successful, looks likely to
rock the EEC to its very founda-
tions. This is no ordinary crisis
which has been precipitated by
yesterday’s “ steam roHerirtg
operation.” Mr Peter Walker,
the British Agriculture Minister,
called it. ■

Little wonder that the British
were making urgent efforts yes-
terday to retrieve an early deal
on reducing their contributions
to the EEC budget this year.
This has always been their price
for accepting the farm price
package.

If the European Commission
implements the package on the
basis of the majority vote. Bri-
tain will claim that the principle
of unanimity os issues of
national interest. ' enshrined in
the Luxembourg Compromise of
January 1966, has been over-

turned. In turn, this will have
sacrificed a key factor in the
British decision to join the Com-
munity, and also in that of
Greece ' and Denmark, who dis-
played their anxiety by joining
Britain in refusing to take part
in yesterday's voting.

The implications could be still
broader, since the burial of the
Luxembourg Compromise
changes the procedural basis
upon which the Community has
operated for 16 years and could
breathe new life into the sur-
pranational principles which in-
spired the Treaty of Rome.
Thus, the drama at yesterday’s .
meeting of Agriculture Minis-
ters could have seismic implica-
tions for the Community as well
as for Britain.

Since -they were claiming last
night that the Luxembourg Com-
promise is still somehow intact
it is doubtful if France, West
Germany and Italy will be will-
ing to accept the possible pro-
cedural consequences of the
actions they spearheaded yester-

day. A heads of government
summit may be urgently needed
to decide whether most Com- .
munity decisions can hence-
forth be taken on the basis of
majority voting, as envisaged by
the Treaty, or whether to re-
store the supremacy of the.
Luxembourg compromise.

hi the meantime, the impact
of the crisis on Britain's rela-
tions with its EEC partners and.
indeed, on its future member-
ship of the Community, could
be profound. To the British
people, other member states
will seem to have employed
"bovver boy” tactics less than
24 hours after they gave a less
than wholly convincing reasser-
tion of solidarity over the Falk-
lands crisis.

Mr Francis Pym, the British
Foreign Secretary, had to
struggle extremely hard to
secure a renewal of the EEC’s
ban bn Argentine exports. His
success was only partial, since
Ireland and Italy will participate
in the seven-day renewal on an

BY JOHN WYLES IN BRUSSELS

informal basis. Meanwhile, with
the Falklands crisis moving
toward a new phase. Britain
needs calm, not confrontation,
with its Community partners.

It is still not clear why other
member states have chosen to
fight the UK so aggressively and
at such a potential political cost.
As Mr Walker pointed out
yesterday, farm price rises bave
been delayed beyond mid-May in
two of the past three years.

Their resentment at the link
Britain forged between farm
prices and its budget demands
hatr always been manifest.
Indeed, the basis of the Franco-
German assertion that the
Luxembourg compromise is still
intact is that Britain’s veto was
misapplied.

Mine Edith Cresson, the
French Farm Minister, argued
yesterday that Britain's , real
vital interest lay in the budget
problem and her farm price
veto "would fundamentally alter
the spirit and the rules of the

Community’.''

Mr Walker dismissed it as
“ cynical, stupid, insolent and
ridiculous” when both France
and Italy inserted in the minutes
their view that the Luxembourg
compromise remained intact He
had pointed out continually that
the price package would add
more than £iQ0m to Uie British
budget contribution of £ihn this
year-.

France would be bound to try
tn maintain the compromise
since it was framed to ensure its
own continued participation in
the Community after President
de Gaulle practised his “ empty
chair" policy in the second half
of 1965. His boycott was partly
aimed at fighting off a move to
majority voting. The com-
promise reached was really an
agreement to disagree

Essentially, it said that
decisions which could be taken
on the basis of a majority vote
would not be taken where “very
important interests of one or

more partners are at stake." In
this situation the Council of
Ministers “ win endeavour with-
in a reasonable time to reach
solutions which can be adopted
by all the members of the Coun-
cil while respecting their mutual
interests and those of the Com-
munity.”

Since then, this has been the
basis for EEC decision-making
and dozens of farm price fix-
ings have been delayed while _
Italian or other national'
interests were satisfied. Indeed,
Mr Walker claimed that Italy
invoked thp compromise on
Monday evening to prevent her
inclusion in Conununitv wide
sanctions against .Argentina.

France and West Germany
have found it invaluable pro-
tection over the years and onlv
the Benelux countries have ever
lamented its existence as the
cause of delay and confusion
and as an obstacle to the supra-
national designs of the Treaty.
Abandonment of the com-

promise is a victory for Benelux
and for the Commission whose
importance would be enhanced
without it.

It is perhaps no coincidence
that it has been achieved while
Belgium occupies the presi-
dency of the Council and has
been encouraged by a Commis-
sion headed by a Luxembourg er,
M Gaston Thorn.

A leading role in demanding
the majority vote from the
Agriculture Ministers was
played bv the Commission’s
vice-president. Viscount Etienne
Dsvignon of Belgium. Britain’s
bitterness at the actions of
these two men will -be long-
lasting. Officials have long felt
that M Thom is personally
hostile to the UK and that he
has manoeuvred his Commission
against British interests. His
re-nomination for a second two-
year term in June may now be
at issue, at least as far as
London is concerned.

WEEK-LONG FRENCH TOUR OF WEST AFRICA

Mitterrand seeks to
untie colonial knots

BY QUENTIN PEEL, AFRICA EDITOR

ASK ANY old Africa hand in
Paris what he thinks about
President Mitterrand’s special
adviser on African relations,
M Guy Penne, and the chances
are he will reply: “He was a
good dentist,"

At a time wben the African
policy of the French administra-
tion is being questioned by
critics both from the left and
the right, as well as from the
Continent itself, the fact that
the President’s closest aide has
no previous African experience
— he was indeed a dentist — is a
matter of considerable cynicism.

The choice should be seen,
however, in the light of the
almost incestuous relationship
between members of preceding
French administrations, and
their counterparts in the former
colonies. M Penne has none of
the complications of such rela-
tionships with African leaders.

M. Penne will be at President
Mitterrand’s right hand 'when
he leaves today on his first trip
to sub-Saharan Africa since
coming to power. His job will
be to provide the President
with the arguments needed to
perform a remarkable . balanc-
ing act in his public statements
as he travels through "the for-
mer colonies of Ivory Coast,
Senegal and Niger.

On the one hand, the French
head of state needs to reassure
the conservative older genera-
tion of African leaders — as ex-'
emplified by President
Houphouet-Boigny of . Ivory-
Coast — that the special relation- '
ship they have always enjoyed-
with their former colonial
power is undiluted by the ad-
vent of a Socllaist government.

At the same time, President
Mitterrand needs to reassure
both the rising generation of
more radical African leaders,
and his own supporters in the
Franch Socialist Party, that he
is not simply maintaining that
paternalist neo - colonialism,
which has characterised his
country’s relations with the
continent for the past 20 years.

His problem is that African

relations have always been
much more involved in French
internal politics than was ever
the case in Britain.

The further dimension of
personal relationships between
African leaders, such os Presi-
dent Houphouet or President
Bongo in Gabon, and leading
politicians in France, only com-
plicates the issue. Moreover,
many heads of state in Franri-
phone Africa have come to
regard the former Colonial
Ministry in Paris’ Rue Monsieur,
now called the Ministry of
Co-operation, as -their own
private administration.

In dealing with this complex
colonial inheritance, M. Penne
has proved to be much more
pragmatic in his advice than
the more radical Africanists in
the Socialist Party would have
wished, seeking to maintain
established links with many
conservative stales. But in spite
of his efforts, relations with
several African governments
have become strained, including
Gabon. Zaire, Cameroon -and
Madagascar

Top officials of the Socialist
Party, the Ministry of External
Affairs and the Co-operation
Ministry in Paris identify four
inter-related themes in the
policy: -

• A switch from blatant inter-
ventionism. as -practised . by
President Giscard, to promoting
African solutions for African
problems, as in the encourage-
ment of an African peace-
keeping force in Chad;

• A big increase in develop- .
ment aid — to be 'doubled from
0.34 per cent to 0.7 per cent
of French gross national pro-
duct by 1988 — with fewer
strings attached;

• The promotion of closer
links with Anglophone Africa
(and the former Portuguese
colonies):

O A greater emphasis on up-
holding human rights, including .
rinser attention lo develop-
ments in southern and South
Africa..

The doubling in the aid

Lambsdorff vents anger on industry

BY JONATHAN CARR IN BONN

budget from its level of some
$2.4bn (fl.32bn) in 1980 may
be much more difficult to
accomplish at a time of
economic recession, but officials
insist that it is a firm commit-
ment of the Administration.

An exercise is currently
under way at the Rue Monsieur
to see if the existing ties on
bilateral aid — at least 80 per
cent of which is committed to
the purchase of French imports
— should not be abandoned, to
counter the argument that it
amounts to economic
colonialism.

Such a move would un- [
doubtedly fall foul of the
French business community,
which so far has been sur-
prisingly uncritical of Socialist
policy in Africa. Traders with
Africa would be happy to see
an inrease in aid, but only if
it .boosts their exports.

The other area of potential
conflict between the French
business community and the
Administration concerns rela-
tions with South Africa. Here,
again, the Elysee has proved to
be more pragmatic than the
policy of the Socialist Party
would bave suggested.

Although the Party was com-
mitted to discouraging relations
with South Africa, . trade last
year Increased by almost half.
However, officials say that the
condition's for awarding export
credit guarantees for goods' to
South Africa have been
tightened up, and studies are
under way to And alternative
sources for France’s major im-
ports from South Africa, includ-
ing both coal and uranium.

Nevertheless, the problems of
unscrambling former relations
both with black and white
Africa have proved to be such
that M Mittefand is being forced
to concentrate on new
departures — such as his aid
policy, and his tough statements
an southern Africa — to prove
his socialist commitments,
rather than on deliberately
breaking former ties.

WEST GERMANY'S Economics
Minister, Count Otto Lambs-
dorff, launched a fierce attack
on the Federation of German
Industry (BDI), accusing it nf
“pessimism and distortion” in
Us latest annual report.

“ Whoever draws up a report
in the way you have done calls
to Hfe exactly those evil spirits
he really wants to exercise,"
Count Lambsdorff told the
federation’s annual meeting
here.

The Economics Ministry has
been seething with indignation
since last week when the BDI
produced a report accusing the
Government of ill-founded
optimism, policy delay and lack
of perspective.

While Count Lambsdorff had
been expected to reply sharply,
the foret of his assault, at the
start of a speech about world

economic problems, took the
hundreds of assembled indus-
trialists by surprise.

Describing the West German
economy as “ better than its
reputation — and certainly
better than the BDT annual
report." the Minister asked:

• Why the federation did not
recognise that conditions for an
upswing had improved, through
a cut in the current account
deficit, falling interest rates and
inflation. reasonable wage
settlements and improved
business earnings?

% Whether the BDI failed to
Eee, or deliberately obscured,
the difference between party
congress decisions and actual
Government policy (a reference
to left-wing" economic policy
motions passed ■ at the recent
congress of the Social Democrat

party, senior partner in the
Bonn coalition)?

9 Whether the federation,
which criticised state subsidies,
thought the Government liked
tn have to pay out money for
steel, shipbuilding and other
sectors? He said he would like
to see industry's reaction if the
Government really got down to
serious talk of subsidy cuts.

• Had the BDI not followed the
Government's battle against
protectionism abroad, or had
this simply passed it by?

Count Lambsdorff. who is a
member of the Liberal Free
Democrat Party — junior part-
ner in the Bonn alliance — said
he knew many industrialists
present felt all would be better
iwth a change of Government.

But, he added, "you can be
quite sure, as I am, that even in
that case not much, and noth-

ing of importance, would
change in economic policy as
currently practised."

The toughness of his re-
marks may be explained in part
by the need for the Free Demo-
crats to emphasise their inde-
pendence as a third political
force in the run-up to key pro-
vincial elections this year.

The minister was hardly less
harsh in the foreign ecoonmic
policy section of his address.

He warned about ' growing
budget and current account
problems in France, about
Japan's “aggressive export and
restrictive import " policies,
and said that after 14 months
of a new U.S. Administration.
" supplq-side economics ” had
turned out to be simply grow-
ing a budget deficit combined
with a tight monetary policy.

Spadolini
to call
votes of
confidence

By James Buxton in Rome

THE ITALIAN Government
will call votes of confidence
to secure the rapid passage
throngh Parliament of
measures aimed at preventing
a potentially devastating ref-
erendum on severance pay-
ments.

The referendum, set for
June 13, will ask Italians to
approve linking severance
payments for workers who
leave their jobs to the Scala
Mobile wage indexation sys-
tem. That could increase
labour costs by as much as
10 per cent as employers
would have to make back-pay-
ments of severance pay
accrued since index-linking
was abandoned in 1977.

To prevent the refe/endmn
going ahead, compromise
legislation was painfully
hammered ont between the
political parties. But it must
be passed by the end of this
week if the referendum is to
be avoided. -

It has already been given
preliminary approval by -the
Senate but is under threat in
the Chamber of Deputies,
where the left-wing Radical
Party and the right-wing MSI
party have put down some .
1,200 amendments.

Sig Giovanni Spadolini’s
Government should be sure of
winning votes of confidence
linked to clauses in the Bill
on the severance pay issue.
All five parties in the coalition
accept the need to approve
the legislation. The measure
also has the acceptance of
union leaders, while the Com-
munist Party te nutting up
only mild opposition.

The referendum, which is
expected to cost the state
some L2Q0bn (£86m) even if
it is cancelled, was promoted
by the Democrazia Proletaria,
a small far-left party.

Akzony

Arnhem Holland

The Board of .Managemem of Akzo N V.
announces fhal Jhe General Meeting of Stock-
holders. held on IB May 1982 a I Amsterdam.

' has decided to distribute for the financial year
1981 a dividend of Hfl 2.- per ordinary share of
HI 1 20.-.

As from 1 June 1982 the a hove- men boned
dividend of HfJ2.- per ordinary share, less 25%
withholding lax. will be payable against surrender
of coupon no. 15. .

Paying offices in. the United Kingdom: .
Barclays Bank Limited
Midland Bank Limited
in London. -. ,

A complete list of paying offices can be
found jn the Official Daily List of 19 May 1982 of
the Amsterdam Slock Exchange..

U.K. Residents.

Dividends so payabfe for U:K. residents will be . .
paid less- 15% withholding tax and U.K. income
lax will be d.educled from the yross dividend. -

- ; Residents of other countries.

For residents of countries other than the United

Kingdom with which the Netherlands has s Double
- Taxation Agreement. Ihe rate of withholding tax
(if any) will be adjusted upon provision by Ihe
■presenting authorised depositary of the
t .ompleted necessary documents (Form 92. elc).
Wheie no such form is submillerf withholding
iax at (he rale of 25% will be deducted.

United Kingdom lax at standard rate will be
deducted unless claims are accompanied by thp
appropriate aflidavil forms. Information concern-
ing any of the above- men) lonerl documents may
be obtained from Barclays 8ank Limned and
Midland Bank Limited.

Arnhem, 19JWay 19SZ-

AKZO

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THE

rffi.

Soviet Union cheers on sidelines over Falklands crisis

SOVIET GEOGRAPHICAL maps
recognised the existence of an
Argentine claim to the Falkland
Islands long before the Argen-
tine invasion of the islands six
weeks ago. They are clearly
marked as the Falkland
(Malvinas) Islands on Soviet
maps and have been described
thus by the media and in official
statements throughout the cur-
rent crisis.

But by no stretch of the imagi-
nation could the Soviet Union
have predicted that these
islands would one day have pro-
vided it with a virtually cost-free

opportunity to lay hare what it

describes as the hostile, aggres-
sive and imperialist pretensions
of Great Britain, Nato and the
US.

The crisis has also allowed the
Soviet Union to project itself as
a true friend of the peoples of
Argentina and of Latin America.
This is the message which the
Soviet Union has been relaying
to its own people and broadcast-
ing around the world in recent

It has presented the whole
affair as an attempt by a colon-
ialist power (Britain) to re-
establish control over a reluc-
tant, oppressed colony (the
Falklands) In defiance of the
UN resolution against colonial-
ism. The oppressed are said to
be fighting heroically for inde-
pendence.

At no stage in the dispute,
however, has the Soviet Union
endorsed Argentina's original
invasion sf the islands. Neither
has it raised the question of
self-determination for the 1,300
Falkland Islanders, as it unfail-
ingly does when supporting, for
example, the claims of the
Palestine Liberation Organisa-
tion or the South West Africa
People's Organisation In
Namibia.

It is not difficult to spot the
reason for these omissions. The
Soviet Union is itself the heir
to tszarist imperial expansion-
ism and the beneficiary of post-
Secohd World War territorial

changes which saw the, incor-
poration of the Baltic republics,
Bessarabia, eastern Poland and
not least the four northernmost
Kuriles Islands.

It clearly does not want to
be seen to be supporting a prin-
ciple which could imply that
countries with territorial claims
ag ains t the Soviet Union, includ-
ing of course China, also have
a right to take over their dis-
puted territories by force.

Having disposed of these prob-
lems by omitting all reference
to them, the Soviet Union has
ostensibly reported develop-
ments in the dispute fairly by
quoting the claims and counter-
claims of both sides.

But at the same time, its com-
mentaries have clearly suppor-
ted Argentina against Britain.

The Soviet Union has been
delighted to have had this
opportunity to criticise the
aggressive nature of the
Thatcher Government, which it
has long seen as anti-Soviet and
one of the staunchest sup-

Anthony Robinson reports from Moscow on official
reactions to “imperialist Britain’s attempts to re-
establish control over a reluctant colony.” The
conflict comes at a time when the Russians are seek-
.ing- to forge new links with Latin American coun-
trise. The U.S. decision to support Britain rather
than Argentina is therefore welcomed.

porters of both the U.S. and
Nato.

But whaj has given most
pleasure to the Soviet Union is
the way in which the Falklands
crisis forced the UJ5. to choose
between loyalty to Latin
America and its commitment to
Nato.

The clearest indication of
what this could mean for the
possible long-tern evolution of
U.S. -La tin America relations,
however, came not with any
Soviet statement but through
the words of the Cuban and

Argentine Foreign Ministers
who both stated, that the U.S.
bad made a " historic mistake "
in coming down on the side of
Britain.

This view is almost certainly
shared by the Soviet Union,
whose, greater interest is not in
the repercussions of the conflict
on British relations with Latin
America bat on the region's
relations with the UB.

Long before the current crisis
erupted there had been increas-
ing signs that the Soviet Union
was planning to expand its

influence in Latin America in
the 19S0s in much the same
way as it spread throughout
Asia and Africa in the 1960s
and 1970s.

In global terms, the Soviet
view of Latin America is, to
some extent, similar to the UB.
view *** Eastern Europe. -Latin
America is seen 'as the " hack
garden " of the U.S. in the way
that Eastern Europe is the
“'back garden” of the Soviet
Union.

The Reagan Administration's
deep concern over develop-
ments in Central America
clearly testifies it is sensitive
to the growth of Soviet influence
in Latin America, just as the
Soviet Union is sensitive to
what it sees as Western influ-
ence in Poland

There can be little doubt that
the Soviet leadership derives
considerable satisfaction from
the fact that the U.S., once so
invulnerable thanks to the
oceans and its military and
economic strength, is now not

only prey to the sort of deep
security preoccupations of the
much-invaded Soviet Union, but
also to the prospect Of increas-
ing political and economic diffi-
culties with its own direct
neighbours in Latin America.;

Meanwhile two other .signifi-
cant events have.- taken .place
during the . Falklands crisis
which have underlined the grow-
ing Soviet interest-;. in Latin
America.

The first was the visit of can-
didate Politburo member: Gen-
nadi Aleyev to Mexico at the
head of a high-ranking Soviet
delegation.

Mr Aleyev is the party boss
of Azerbaizhan. He is also
seen in Moscow , as one of the
rising stars of the younger
generation' of Soviet leaders. He
is . tipped to take over as head
of the KGB if, as expected, the.
present incumbent Mr Yuri
Andropov moves up to higher

thing s.

His visit underlined the future
importance of Soviet relations

with off rich and fast develop-
-ing Mexico. The. second event
was tie state visit to the Soviet
Union earlier this month of a
Nicaraguan delegation led by
Sr Daniel Ortega, a leader of the
left wing Nicaraguan junta., Sr
Ortega received the full red
carpet treatment from the Soviet
leadership and had a direct
meeting With -President Brezh-
nev, who also hosted an official
dinner in his- honour.

Sr Ortega went back -to-
Nicaragua with the promise of
$60xn (£33 m) in economic assis-
tance -and the status of a fully-,
fledged friend of the Soviet
Unidiu

The Soviet Unioo is also work:
ing to reduce UB. influence and
strongly supported - the .call by
Venezuela and other Latin
American countries to remove,
the headquarters of the Organi-
sation of American States
(OAS) from Washington to a
Latin American capital, follow-
ing the pro-British stance of the
U.S. over the Falklands dispute.

Pressure grows for
dropping of Alemann

Sr HUGH O’SHAUGHNESSY IN BUENOS AIRES

THE LIQUIDATION of two
more finance companies and the
failure of the Argentine Govern-
ment to receive any offer for
the purchase of the electro-
mechanical division of the ailing
state-owned industrial company,
Sian, have revived speculation
about the future of Dr Roberto
Alemann, the Economy Minister.
He has just completed an exten-
sive tour of Europe and the UB.
seeking to bolster Argentina’s
foreign credit.

On Monday, the Central Bank
decreed the winding up of
Porfar, Argentina’s fifteenth
largest finance company, which
suspended payments last week,
and of Simboto, a Tucuman-
based finance company, eighty
eighth in the Argentine ranking.

More than a dozen finance
houses have now closed since
the beginning of the Falklands
crisis and a score or mare others
axe reported to be in difficulties.

The failure of any purchaser
to come forward on Monday, for
the Sian company which was
being offered for a minimum of
$3m (£1.6m) free of any liability
was the third such failure.
During the term in office of Dr
Jose Alfredo Martinez de Hoz,
Economy minister under
General Videla from 1976 to
1981, two abortive bids were
made to sell the plant.

Despite the failure to sell the

electro - mechanical division,
efforts are to go ahead to dis-
pose of the rest of the group by
means of tenders which will be
open on June 16.

The state first acquired a
majority holding in Sian in 1970
after the company which used
to assemble Austin cm ran
into finan cial difficulty.

Last week the junta halted
the process of denationalisation
of state-owned companies, which
had been the cornerstone of the
policies of Dr Alemann. The
announcement of the change of
plan came daring Dr Alemann's
absence abroad, but it was made
clear that plans to sell Sian
would not be affected.

Argentina's continuing finan-
cial crisis was tempered by the
news that during the second
week of May the country's inter-
national reserves rose by 9110m
bringing the increase on the
first two weeks to $250m. It
was also announced that the
Capozzdo Group, a meeting of
whose creditors was held oat
Saturday, was seeking to
capitalise some of its debts of
9170m.

Continuing hostilities with
Britain, pressure from indus-
trialists, trade ugmm&ts and
politicians for an end to Dr
Aleman’s monetarist policies
and recent economic reverses
are all leading to speculation
that the Government may have

Bolivia hit
by cash
ripple effect

Haughey under Opposition lire

BY BRENDAN KEENAN, DUBLIN CORRESPONDENT

Mr Joseph Luns, the Nato Secretary-General, announcing
the organisation's continued support for Britain in the
Falklands conflict.

to seek a new Economy Minis-
ter of less orthodox views if it
is to tnmfn^aiin any unity around
the political strategies of
General Leopoldo Galtieri.

AB-DJ reports: Falkland
islanders opposed to Argentine
rule have been arrested and
possibly pnt in a detention
centre, anexiled member of the

Falklands Legislative Council
said yesterday. The report
came from Mr John Cheek, who
said in London that he had
received a letter from his
father in the disputed South
Atlantic territory, dated April
29, which said Mr Cheek’s
brother. Gerald, was among
those arrested.

t

Haig reaffirms U.S. support for London

LUXEMBOURG — U.S. support
for britain in the crisis was
reaffirmed by Mr Alexander
Haig, the U.S. Secretary of
State, yesterday. “We intend to
abide fully by commitments
made,'' Mr Haig told reporters.

His statement followed the
announcement of renewed sup-
port by Foreign Ministers of the

North Atlantic Treaty Organisa-
tion for Britain’s position in the
conflict

Mr Joseph Luns, the Nato
Secretary - General, told re-
porters there was no criticism
of British military action in the
South Atlantic.

A communique issued by the
Ministers said: “In view of the

fundamental importance which
they attach to the principle that
the use of force to resolve inter-
national disputes should be
resolutely opposed by the inter-
national community, the allies
condemn Argentina for its
aggression against the Falkland
islands and dependencies and
deplore the fact that after more

than six weeks she has still not
withdrawn her forces in com-
pliance with mandatory resolu-
tion 502 of the Security Council.

“They call for a continuation
of the efforts to achieve a satis-
factory negotiated settlement in
accordance with this resolution
in its entirety.”

AP

By Peter Montagnon,
Euromarkets Correspondent

BOLIVIA has told its Interna-
tional bankers that it Is suffer-
ing a temporary shortage of
foreign exchange due to Its
Inability to discount the pro-
ceeds of gas sales to
Argentina.

As a result it has asked
them to waive for one week
a payment due on a 975m
credit to the on concern
Yaeimientos Petroliferos Ffa-
cales Bolivianos. The pay-
ment, which fell due yester-
day amounts to $4.6m of
which it said only $2Bm
would be paid on schedule.

Sr Gonzalo Ruiz, governor
of Bolivia's Central Bank,
told the banks concerned that
gas export sales to Argentina
have been discounted mi a
regular basis In the past and
represent a substantial source
of dollar revenue to Bolivia.

The loan In question was
heschednled in the spring last
year as part of a general re-
scheduling by Bolivia of some
$450m foreign debt Part of
the conditions for the
rescheduling was that Bolivia
would agree' to an economic
stabilisation programme with
the International Monetary
Fond.

While this has not hap-
pened, banks have generally
been willing to ignore that
part of tiie rescheduling con-
ditions because until now
Bolivia has been fairly prompt
in meeting its debt service
payments.

The latest development
however, is one example of
the Argentine crisis having a
ripple effect on other Latin
American countries, bankers
said yesterday.

Elsewhere in South
America banks are also grow-
ing increasingly worried about
Honduras which is seriously
behind with debt service pay-
ments. Honduras owes com-
mercial banks around 9350m,

THE IRISH Government’s
policy on the Falklands, and its
refusal to extend trade sanc-
tions against Argentina, have
been strongly criticised in the
Bail (Parliament) by the Op-
position leader. Dr Garret Fitz-
Gerald.

Dr FitzGerald accused the
Prime Minis ter, Mr Charles
Haughey, of damaging Anglo-
Irish relations, perhaps irre-
parably. He also claimed that
the Government had thrown
away Ireland’s traditional role
as a peacemaker and accused it
of having “ a wavering and
ambivalent attitude.”

Mr Haughey said the Govern-
ment’s policy had been con-
sistent and constructive 'and
that Ireland had not altered its

support for United Nations re-
solution 502 which, calls for a
cessation of hostilities and the
withdrawal of Argentine forces
from the islands. But he re-
peated Ins view that to continue
to support sanctions, in view of
the serious escalation of mili-
tary activity, would endanger
Irish neutrality.

Although everyone agrees
that Anglo-Irish relations have
reached one of their lowest
ever ebbs, the Northern Ireland
Minister with responsibility for
industry, Mr Adam Butler
: showed that business would go
on by visiting Dublin yesterday
for talks on a natural gas pipe-
line from Dublin to Belfast.

Trade between Ireland and
Argentina— worth about I£14m ;
—is in theory now free to re-
sume. A system ofl licences will

be instituted however, to pre-
vent goods passing on to other
European Community states,
and as a result, there is un-
likely to be any practical re-
sumption of trade during the 1
seven days’ extension of sano
tions. i

Irish diplomats will try to (
minimise the damage to Anglo; , ‘
Irish relations and EEC soli- :
darity. Some officials would ..
have preferred Mr Haughey to :
lay less stress on neutrality as '
the reason for Ireland’s diffi- •
rallies, because the scope of
Irish neutrality is distinctly ill- •
defined. Dr FitzGerald de- ;
scribed it as “a phoney excuse." ; .

Mr Haughey was, however, [
almost certainly correct in the ;•
assertion that his policy has '■
wide support among the Irish
pedple. ,

Britain asks Rome to explain

BY JAMES BUXTON IN ROME

BRITAIN will be seeking details
from Italy on how it intends to
enforce its undertaking that it
will not undermine the Euro-
pean Community’s sanctions
against Argentina, even though
it refused In Luxembourg on
Monday to renew them for an-
other seven days.

Because of domestic political
pressure Italy agreed only to
maintain its embargo on deli-
veries of aims to Argentina. It
indicated that it would not allow
itself to be a channel far the
entry of Argentine goods into
other EEC countries.

The derision not to extend
the sanctions and thus to break
EEC solidarity on the Falklands
issue was made by the Prime
Minister, Sig Giovanni Spado^
Uni. Both the Christian Demo-
crat and Socialist parties, the
two most important members of
his five-party-coalition, were
opposed to renewal, as was the

large opposition Communist
Party.

-The Italian action was justi-
fied on the ground that; about
80 per cent of the parties
represented in Parliament were
against renewal, believing Italy
should be more even-handed in
the dispute, and for the more
practical, reason that the future
of the Government would have
been jeopardised by a decision
to renew the measures;

Behind the decision He the
very strong ties of trade and
investment between Italy and
Argentina. There are L3m .
Italian passport holders in- Arg-
entina and about 10m of the 27m
Argentine population are of
Italian origin. Italian public
opinion has tended increasingly,
to favour Argentina as the Falk-
lands conflict has developed.

The decision was a painful
one for Sig Spadolini, however.
His small Republican Party is

strongly European In outlook,
and Sig Emilio Colombo, the
Foreign Minister, was visibly
embarrassed by the decision he
was obliged to carry out.

An editorial in the economic
daily, H Gloho, . yesterday
attacked the Government’s deci-
sion. and Italy’s consequent
isolation in Europe arid separa-
tion front the U.S. “for the pre-
tence of upholding, against' tbe
necessity of dignified choices,
the practice of ambiguous cun-
ning without honour.”

Officials at the Ministry of
Foreign Trade said that the
sanctions against Argentina had
had little effect on Italian
imports because they had
covered only goods which had
been despatched after the sanc-
tions began. With a sailing time
from Argentina of two and a
half weeks that meant that the
sanctions had only begun to bite
in the past 1C days.

A-

]£2

H >

OVERSEAS NEWS

President’s relative
arrested in

Prime Minister Zenko Suzuki faces a crucial battle, reports Richard Hanson in Tokyo

Japan prepares for political heat wave

Korean loan scandal

BY OUR FOREIGN STAFF

A RELATIVE of South Korea’s
President Chun Doo Hwan was
arrested yesterday as investiga-
tions spread into a multi-million
pound loan scandal that has
shaken. Seoul’s financial and
business community.

The prosecutor-general's office
said General Lee Kyn-Kwang, a
former Provost Marshal in the
army, an uncle of the President’s
wife, had been detained and
charged with accepting 100m woq
(£ 7S.5S51 from money lenders
after promising to try to influence
officials to help set up a bank in
partnership with unnamed banks
in the Middle East.

The scandal has now led to IS
arrests and forced several com-
panies to the verge of bank-
ruptcy. Gen Lee was being
questioned yesterday about his
alleged involvement with two
money-lenders accused of
manipulating the unoffiical loan
market, causing a run on the
stock exchange and a drying up
of short-term loan capital.

He has resigned as president
of the state-run Korea Mining
Promotion Corporation as a
result of the scandal. Those
arrested for involvement indude
two bank and two company presi-
dents.

Trading in shares of two com-
panies. Kong Yung Construction
and Ilssin Steel, have been
suspended and Ilssin, which had
sales of $22 im <£121.5® > in
1931, has been put up for public
sale. ,

About S00 Ilssin workers
demonstrated against non-pay-
ment of wages and for job
security on Monday. The com-
mercial Bank of Korea, whose
former chairman, Mr Kong Duk
Jong, is being held in connec-
tion with the scandal, subse-
quently released funds to meet
the payments.

A LONG-AWAITED proposal to
overhaul Japan’s three most
controversial public corpora-
tions — rail, telecommunications
and tobacco and salt — has
stirred a political hornet’s nest
for Mr Zenko Suzuki, the Prune
Minister.

Mr Suzuki’s handling of the
proposed reforms, which include
a plhn to return at least partial
control of governmental bodies
to the private sector, may be
crucial in determining his
chances for re-election as presi-
dent of the ruling Liberal Demo-
cratic Party next autumn.

The president of the LDP
automatically holds the post of
Prime Minister.

Reform of the public corpora-
tions is, however, just one of
several burning political and
economic issues which Mr
Suzuki appears intent on braving
over what looks like being a
very hot political summer in
Japan.

In a recent about face, Mr
Suzuki and his supporters
decided to push for a lengthy
extension of the current Diet
(parliament) session, which
ends today.

The strategy appears designed
to let the hottest issues burn
themselves out in Diet debates
before gearing up for a tough
fight for the November party
election.

Waiting on the sidelines to
take advantage of possible blun-
ders by the Prime Munster are
a number of determined LDP
rivals.

These include, prominently.
Mr Takeo Fukuda, the former
Prime Minister, and Mr Toshio
Komoto, the Economic Plan-
ning chief.

Fanning the flames will be a
final report next month on un-
precedented shortfalls in tax
revenues last fiscal year of
over Y3,000bn (£7bn) and (he
prospect of a larger gap be-

tween government spending
and revenues in the 12 months
from April Z.

Charges of fiscal mismanage-
ment by the Government will
be hard to duck.

Added to this, a potentially
embarrassing (to the LDP court
ruling expected early in June
in the long-running Lockheed
bribery scandal affair.

Mr Suzuki meanwhile has
added to his agenda this sum-
mer the passage of a compli-
cated bill changing tbe election,
rules for the Upper House,
making national campaigns less
costly for candidates.

Mr Suzuki is thought to need
this legislative victory to boost
his image as a “clean” poli-
tician before the usually un-
seemly LDP political infighting
begins in the autumn.

The initial reaction to the
plans to reform tbe Japan
National Railways (JNR). the
domestic monopoly Nippon
Telegraph and. Telephone

Public Corporation (NTT) and
the Japan Tobacco and Salt
Public Corporation indicate the
likelihood of an uphill battle
against those with vested
interests in maintaining the
status quo.

The proposals were made by
a subcommittee, the Prime
Minister’s own ad hoc Council
on Administrative Reform,
which will make a final report
in July. »

Under the provisions outlined
this week the JNR, whose
cumulative deficits topped
Ylfi.OOObn at fee end of March,
would be divided over the next
five years into several regional
companies.

The government would retain
a majority share but the
companies, would be expected
to rationalise drasti cally.

Similarly NTT would be
divided into smaller regional
companies, but with a central
company, owned wholly by the
government, still controlling-

both fee key circuit arid fee
local companies.

The Tobacco and Salt
Monopoly, which, among other
functions buys all locally pro-
duced tobacco leaf, would have
to split off its import business
into a private company.

This has become a touchy
trade issue as U.S. cigarette pro-
ducers have begun demanding
significantly more access to fee
Japanese market

Observers expect that opposi-
tion to these changes from, the
bureaucracy and political par-
ties will result, at best, in fee
passing of- a much more
moderate form of fee proposals.

They note that, along with
strong resistance within the
LDP, fee Japan Socialist Party,
has come out against the pro*
posals.

The JSP, with the Communist
party, depends heavily on sup-
port from public sector em-
ployees.

AP-DJ

Unexpected
boost for
Pakistan’s

economy

By David Dodwell -

JAPAN’S AEROSPACE INDUSTRY

President Chun: MPs call for
Cabinet dismissals

There have been eaHs in
Parliament for Economic and
Justice Ministers to take respon-
sibility for the scandal and to
resign. Opposition parties have
sought clarification of allegations
feat President Chun’s ruling
Democratic Justice Party) may
have had links with the two
money-lenders

Tbe prosecutor-general's office
named the money-lenders as a
husband-and-wife team, Mr Lee
Chol-Hi, former deputy chief of
Korea’s Central Intelligence
Agency, and Mrs Chang Yong-Ja.

Companies turn to the
unofficial loan market as an
alternative to financial institu-
tions as a source of funds.
Banking officials believe the
market has about won 6,600bn
. f £5-bn) to be lent, often at
interest rates nearly twice as
high as bank rates.

Military sales provide rapid increase in business

JAPAN’S areospace industry is
flying high as military sales to
the country’s self-defence forces
provide rapidly increasing busi-
ness for the 31 member com-
panies of tbe Society of
Japanese Aerospace Companies,
which does 85 per cent of its
business with fee military.

Aerospace sales are estimated
to have risen 17 per cent in fee
year to Marcb over 1980-81, and
are expected to rise 39 per cent
this year to $1.94bn (£l.07bn).

Mr Yoshihiro Sakamoto, air-
craft industry director of the
Ministry of International Trade
and Industry, says licensed pro-
duction of McDonnell Douglas
F15 fighters and Lockheed P3C
submarine spotters is the main
factor in the rise.

The self-defence forces will

order 84 aircraft this year,
including 23 Fife and seven
P3Cs, for $lS5bn, almost three
times the amount of last year’s
orders. The aircraft are for
delivery over many years.

U.S. officials complained for
years that Japan did not spend
enough on its own defence.
Compared with the U.S. and
Europe, Tokyo’s defence outlays
are still minute. But Japan's
rapid growth has recently led
more than one U.S. expert to
worry last the U.S. may have
encouraged Japan to develop an
aircraft industry that might one
day rival the U.S., just as
Japan's car and steel industries
do today.

Japan's constitution forbids
the export of armaments. Ship-
ments of non-military aircraft.

on the other hand, are allowed,
Japanese aircraft executives,
however, scoff at the notion that
they might ever overtake the
U.S. Japan's aircraft exports are
expected to rise 56.9 per cent in
the year ended in March, but
amount only to 9358m.

The Trade Ministry is en-
couraging the indsutjy's develop-
ment as part of its strategy to
move Japan into high-technology
indsutries and out of basic
industries where it faces increas-
ing competition from newly
industraEsed countries such as
South Korea and Taiwan.

The Ministry is supporting
aircraft - development with
hundreds of millions, of dollars
in loans, which do not have to
be repaid until fee ventures arc
profitable. In one such effort.

three Japanese companies are
jointly developing a new jet
engine with Rolls-Royce. In
-another, a three-company
group -is , developing fuselage
parts for Boeing 767 and 777
airliners. .

Japan produces the McDonnell
Douglas and Jjockheed aircraft
under licence, rather than buy-
ing them outright from the US*
mainly to learn about up-to-date
aircraft manufacturing systems
and technologies, but also, to
provide for Japanese business.

Mitsubishi heavy industries, a
main .contractor for the FlSs;
will deliver Iff of the advanced
fighters to the self-defence
forces: by next April, and' a
group of companies headed by
Kawasaki will deliver five
P3Cs.

Non-military business is also
doing well. Late last year,
Mitsubishi received a certifica-
tion from US. aviation authori-
ties to fly its Diamond-1 twin-
engine business jet in the U&
Mitsubishi regards fee aircraft
as a competitor to .Ihc Cessna's
Citation two.

Kawasaki has orders for- 130. .
BK117 twin-engine helicopters/
which it developed jointly wife
Messers chmitt-Bolkow-Blohm- - of
West Germany. . t

Kawasaki, Mitsubishi and :.
Fuji heavy industries are plan-
ning' this summer to increase
fuselage production, for fee'
Boeing -767 to five a month from
three, unless weakness in over-
seas aircraft markets dictates
otherwise,

AP-DJ •

PAKISTAN’S economy has
-been given an unexpected
boost in recent montfis as
remittances from foreign
workers have surged and
Import costs have risen much
more slowly than forecast.

As a result, gloomy predic-
tions of a $4bn (£2.2bn) trade
deficit, a fiSOOm-or-more
deficit on the country’s over-
all balance of payments and
increased foreign, borrowing
needs, have been overturned.

Instead, the government is
forecasting a trade deficit for
fee year ending in June of
just S3bn, and an overall
balance of payments deficit
of no mere than 550m.

Remittances from Paki-
stanis working overseas have
surged, by about $50m a
month since February, and
are now expected to amount
to $2_lG-$2.19bn this financial
year.

Exports arc expected to
recover to earn about $2.7bn
—below last year’s SJLSbn—
but a great deal better than
feared in January- when
cotton exports, which account
for at least per cent of
visible exports, had slumped
to barely a third of fee pre-
vious year's earnings.

-Imports, which rose 14 per
cent last year to 9559m, have
risen much more slowly than
feared. As. oil imports for
the year , rire likely to cost
JnstSIJffin, -compared wife
earlier predictions of SL6bn,
the import bill is .expected to
rise by just- 4, per cent to..
$5.7SbiL .

The Government j s ^particu-
larly pleased wife fee
economic twro-tound, since it
means, forecasts, made for,
economic .recovery following
a major deto rescheduling in
January last year are now'
back bn larger, •

’to *

V

raw..

. v .

,V“

H^ndaliRmes Wednesday May 19; 19S2

AMERICAN NEWS

for nuclear arms
freeze rejected

8.Y REGINALD DALE. Ui. EDITOR IN WASHINGTON

Senate
overturns
budget plan

Smugglers’ paradise on the Mexican border

BY DAVID LASCELLES, RECENTLY IN BROWNSVILLE

THE REAGAN" 'Administration
yesterday rapidly dismissed a
proposal by President Leonid
Brezhnev; the Soviet leader, for

- an immediate freeze on strategic
nuclear weapons on the grounds
that it would leave the U.S. at
a disadvantage. -

Senior Admin stratSon officials,
however, welcomed what they
saw as. Soviet readiness to start
a new round 'of strategic arms
. control negotiations.

Mr George Bush, the U.S.
Vice-President, said he- was
,l encouraged " by the apparent
Soviet acceptance of. Washing-
ton’s offer to start talks. In
making his proposal earlier in

- the day, Mr Brezhnev had said
that the freeze should coincide
with the opening of negotiations.

In Luxembourg, Mr
Alexander Haig, the Secretary
of State, said U.S. agreement to
a freeze would relieve the
Soviet Union, of any incentives
to make rapid progress towards
substantial reductions in strate-
gic forces, ....

He emphasised, however,
that he was not formally re-
jecting Mr Brezhnev's proposal,
and went out of. his way. to sug-
gest that on some points Soviet
and U.S. views were not incom-
patible. He was willing to see
points of agreement, he said.

President Ronald Reagan has
proposed that in. a first stage
both sides should reduce their
land and sea based inter-contin-
ental missiles by one third,

. leaving no more than half of
their total forces on land.

Mr Haig, who was in Luxem-
bourg for the Nato spring min-
isterial meeting, said that a
freeze would codify Soviet ad-
vantages and also affect the
U.S.-Soviet talks in Geneva on
intermediate range nuclear mis-
siles in Europe.

“ Nuclear freezes do not pro-
duce effective arms control," he
said..

U.S. officials travelling with
Mr Haig, indicated that he
might • meet Mr Andrei
Gromyko, the Soviet Foreign
Minister, next month to arrange
the opening of negotiations. Mr
Reagan has proposed that they
• start before the end of June.

Anthony Robinson In Moscow
writes: President Brezhnev,
while accepting that the two
sides should enter into new
strategic arms reduction talks,
criticised the latest US. pro-
posals put forward by President
Reagan at . Eureka. Illinois, on
May 9 as being absolutely one-
sided.

Speaking at the opening
session of the Kosomol (Young
Communist) conference in
Moscow, he said the proposals
were ; 4 orientated not to the
search for agreement but* to
provide conditions for the con-
tinuation of Washington's
attempts to achieve military
superiority."

For talks to be successful “ it
Is necessary that belli sides
should conduct them with due
regard for each other’s legiti-
mate security interests and
strictly in accordance with the
principles of equality and equal
security” he added

Mr Brezhnev did not mention
President Reagan's proposal
that the two men should meet
in New York next month during
the UN special session on dis-
armamenL

By criticising the U.S. pro-
posals generally as "'one-sided,"
President Brezhnev has en-
dorsed the initial Soviet reac-
tion that the Reagan proposals
are unfair because the Soviet
Uninn has superiority in both
the numbers and through weight
of such land-based missiles.

On the. other hand Mr
Brezhnev’s new proposal for a
freeze on strategic weapons is
seen by Western diplomats
both as a move to encourage
the “freeze movement” in the
West and try to stop the U.S.
from deploying new Trident
and MX missile systems and
the B-l bomber, neither of
which were even mentioned in
President Reagan’s Eureka
proposals.

Tlie- Soviet President also
recalled the unilateral Soviet
decision announced last March
to halt further deployment of
SS20 mis&Hes in the Western
part of the Soviet Union.

By Aratole Kalestsky in
Washington

THE U.S- Senate yesterday
effectively overturned the
compromise budget forged by
its budget committee and the
While House less than a week
ago.

At the same time, Mr
Donald Regan, Treasury Sec-
retary, warned of a '‘very
anaemic -recovery ” unless
Congress agrees quickly on a
budge L

After days of intensive
lobbying. Senator Pete
Doraenici, the budget com-
mittee's chairman, acknow-
ledged late on Monday that he
could not muster enough sup-
port to sustain his agreement
'with President Ronald Reagan
on social security “ savings”

“ We don’t have the courage
to do it ” In an election year,
he said, after Republican and
Democratic senators vied with
each other to go on record
opposing the $40bn (£22bn) of
social security savings over
three years proposed in the
budget resolution.

With the social security
savings effective]]' dropped.
While Bouse officials and
Republican congressional
leaders were working fever-
ishly yesterday to come up
with new proposals to reduce
the budget deficit.

YOU CAN’T GO further south
1 in the U.S. than (he Tex&n town
of Brownsville without faNiing
into the muddy waters of the
Rio Grande. But being the last
stop before Mexico— or, mure
pointedly, the first after it — bos
its compensations, and they
have little to do with hot
weather and the whiff of chilli.

Far from languishing at the
back of beyond, this bustling
community of 85.000 is riding
a boom that is no less sweet
for being built as much on
flight capital, and even contra-
band, as on a thriving cross-
border trade.

Brownsville and its com-
panion town of Maiamoros
across the river lie at the
meeting point of one of the
-world's richest countries and
one of its poorer. It would he
hard to find a place where iwo
such vastly different communi-
ties live cheek by jowl driving
across the short border bridge
is like stepping into a time
machine.

Brownsville is brash, modern-
day American, with broad pahn-
lined avenues, garish petrol
stations and carefully mani-
cured condominiums (even if
many of the signs are in
Spanish and half the inhabi-
tants basically Mexican). Only
a. few yards away in Maianutros,
the streets are- narrow and
choked with dilapidated
vehicles, the buildings low and
shabby, and the air tmmislak-
ably Hispanic.

Both towns lie on the same

rich alluvial plain deposited by
(he Rio Grande, but while the
farms round Brownsville sport
lush pastures and fat cattle,
those outside Maiamoros look
■ill-tilled and -poorly slocked. No
traveller can fail to be struc-k
by what are politely called the
“ cultural ” differences. Passing

through the (computerised; U.S.
border post is a brisk and
breezy business. On the Mexican
side, the traveller instantly
learns the meaning of -'“La
mordida,” the bribe without
which he will be lucky u> get
further than the first checkpos-L

This huge disparity is the key
to both towns’ livelihood: they
Ihrive off each other in a way
that only Lotal opposites can.
Brownsville has the money and
the goods, Maiamoros the cheap
labour and the markets, it is
only a question of whether the
two come together above or
below board.

The legitimate business is
highly institutionalised. Bath
the U.S. and Mexico have made
special arrangements to help it
flourish. Every day, thousands
of Mexicans cross the bridge on
special temporary passes to shop
■in the U.S., seeking everything
from duty-free luxuries to basic
necessities which are either ex-
pensive or unavailable in
Mexico. At the same time,
thousands of U.S. industrial
components head the opposite
way to be assembled by cheap
Mexican labour in special
bonded industrial estates and
then brought back again.

Not surprisingly the gap in

it

Sfe

Mexicans caught trying to enter the U.S.

living standards has made
Brownsville-Matamoros a smug-
lcr*s paradise, so much so that — ;
at a petty level at least — smug-
ling has become part of >the
way of life.

At one end of the scale, pros-
perous American housewives
drive over to MaiarnoT-os to hire
maids while their husbands fill
up with cheap liquor and petrol.
At the other, planes, crammed
with nigh technology equipment
head south, usually at night, for
remote landing strips in
northern Mexico where well-
organised gangs take in on else-
where by truck.

One U.S. entrepreneur who
runs a hotel in northern Mexico
relares that-he not only shipped
in virtually all the material and
equipment tor it but also " runs
in " all the food and supplies by
light plane because local traders
cannot mutch the U.S. for
quantity, quality and even -price.
“La Mordida" takes care of the
local officials.

The pace of purchases b as
quickened in the run-up to this
year’s Mexican elections because
even though the outcome is in
little duiibr. left-wing parties
are mounting a credible chal-
lenge 10 the ruling establish-

ment. But ,if Brownsville
benefits from Mexico's short-
coinings. it can suffer too. The
recent surprise depreciation of
the peso cut Mexicans’ purchas-
ing power by -id per cent at a
stroke and led to a noticeable
drop in cross-burdcr business.

The shadier side to Browns-.
Ville-Mutamoros' borderland
prosperity presents ' the U.S.
authorities with something of a
dilemma, not least because the
Mexicans turn a blind eye to
most things short of gun-
running aiid currency offences.
Smuggling dropped slightly
when Mexico raised the price
uf petrol and liquor, though its
intention was to boost revenue
rather than stop smugglers.

Washington is reluctant to
ut-l too heavy hacdedly for fear
of offending its touchy southern
neighbour. Formalities at the
border are kept to a minimum:
indeed, the immigration
authorities seem more con-
cerned with keeping out
infected animals and produce
than undesirable human beings.

The Rio Grande itself is
patrolled by aircraft and
ground units but. short of
stringent barbed wire along its
entire length, there is little the
immigration authorities can do
to keep determined Mexicans
out. They have done bettor
by raiding known communities
of illegal aliens in southern
towns like Houston and Los
Angeles. A recent sweep
netted 5.000 of them.

"i :> .V >» • • . ,

v :

Sharp EEC attack on
Reagan’s trade policies

BY REGINALD DALE, U.S. EDITOR IN WASHINGTON

s-'.vme

:VT

T

£» 1 \\ * A

THE EEC yesterday made a
blistering attack on the Reagan
Administration's trade policies
and accused it of disregarding
agreements reached in the
Tokyo round of international
trade talks.

Sir Roy Denman, the Euro-
pean Commission’s Director
General for External Relations,
warned that if the EEC, the
U.S. and Japan could not solve
their trade problems in the
coming months, the entire world
trading system would be at
risk.

In a speech' in Houston,
Texas, Sir Roy sadd Washing-
ton's attitude to the General
Agreement on Tariffs and Trade
(Gattl was “ uncertain." He
pointed out that no senior
trade official in Washington had
any first hand experience of the
Tokyo round. He attacked the
U.S. mission to the EEC in
Brussels for ignorance of Gatt
procedures.

Sir Roy said it was difficult to
resist drawing the conclusion
that Washington was trying to
shift the blame for certain dif-
ficult conditions in 4he U.S. —
particularly in the steel indus-
try and agriculture — “to
foreigners in general and Euro-
peans in particular."

He accused the Reagan Ad-
ministration of always assuming
that the rules were 100 per cent
in -the U.S/s favour and failing
to be even-handed in explaining
the rules of the world trading
system to American industries-
seeking protection. • .... •

In particular; he charged
Washington with overloading
the Gatt by bringing a' whole

number of separate cases against
the EEC on wheat, flour, sugar,
poultry, pasta, canned fruit and
citrus. The unparalleled con-
centration of cases risked
“blowing” the Gatt dispute
settlement process, he warned.

The U.S. was going “ a-million
miles _ beyond what was
negotiated in the Tokyo round ”
vo attacking EEC farm export
subsidies. Sir Roy said. He added
his concern at the frequent use
of the word "aggressive” to
describe . U.S. farm export
policies by Mr John Block, the
U.S. Secretary of Agriculture.

Sir Roy said that U.S. Govern-
ment support for agriculture
was of the same order of magni-
tude as in the EEC. Budget
spending on agriculture as a
proportion of the faun indus-
try’s value added in 197S-1978
was 39.2 per cent in the EEC
and 3T.6 per cent in the U.S.,
he- claimed.

On steel. Sir Roy repeated
accusations that the U.S. steel
industry. had launched “a mas-
sive campaign of harassment
against European exporters.”
He dismissed claims that
European dumping was causing
material injury to the U.S. steel
industry as “ moonshine."

The European share of the
U.S. market had fallen from
6.7 per cent in 1979 to 4.7 per
cent in 1981. Yet, he said, on
January 31, four trucks contain-
ing over a million documents
drew up outside the Washington
headquarters of the Interna-
tional Trade Commission and
85 suits were launched against
European steelmakers.

MEMORANDUM

Draft: For Presentation at London Board Meeting, July 1982
From: General Manager, North American Operations

Opec ‘to maintain level
of output through quarter’

BY KIM FUAD IN CARACAS

THE ORGANISATION. of Petro-.
leum Exporting Countries will
main t ain its 17.5m barrels a day
oil- production ceiling for the
rest of the present quarter,
according to Dr Subroto, Indo-
nesian Energy Minister.

Dr Subroto is one of .the four
Opec ministers forming the .mar-
ket .monitoring committee set
up following the organisation's
decision in March to programme
the production of 12 of its
members.

The other committee members
are the Energy itinisters of
Algeria, the United Arab
Emirates and Venezuela.

The committee met in Cara-
cas. Venezuela, yesterday to re-
view the effect . of the cut in
Opec production on prices ana
demand prior to Thursday s
ministerial conference in Quito,
Ecuador. '

Dr Subroto indicated that, the
Opec ministers meeting in Quito
would probably ratify the com-
mittee’s recommendations that

the production programme
' started on. April I be continued
until -the end of June and that
the $34 a barrel level for the
■organisation-5 marker crude
remain unaltered.

He also said there could be
changes in output allotments in
the third quarter, depending on
world demand. A number of
Opec countries which have been
under strong economic pressure
due to reduced oil production
could have their quotas
increased.

Opec officials who met in
Caracas on Sunday and Monday
were reported to have recom-
mended to the monitoring
committee that the production
programme : should .be main-
tained for at. least another
quarter., or perhaps for the rest
of the year.

Some Opec ministers, how-
ever, are known to oppose lock-
ing members into long term pro-
duction limits and prefer to
establish greater flexibility in
pro-rationing output

enci

Re: Our U.S. Activities

When we last met, we discussed the need to improve the firm's
image in America. It now seems advisable to summarize, our
discussion and make a formal recommendation.

American corporations will spend an estimated $V billion on
corporate advertising in 1982. While such advertising may
appear self-indulgent to some, Americans understand its purpose:
to establish identity and build awareness.

Aside from those objectives, we should consider corporate
advertising as a means of supporting our plan for acquisitions,
and attracting potential joint venture partners and employes.

If corporate advertising can help achieve these goals (and the
experience of American corporations suggests it can), then funds
so devoted will be well invested. Such a strategy should be
considered a long-term investment, not .unlike an investment in
capital- goods.

The cost need not be exorbitant. A campaign to run exclusively
in The Wall Street Journal, the medium preferred by American
business, will suffice. 1 stress the importance of maintaining a
corporate presence in this publication. It is an institution in
America, read by nearly every executive one encounters
-throughout the U.S.

As Manager of North American Operations, I request approval of
the attached budget for an initial program. With Board
approval, 1 shall authorize our advertising people to begin
preparation of proposals*

end.

Inzer nark

The Wall Street Journal As basic to America as business itself.

ices: Inter national Press Centre, 76 Shoe Lane, London EC4. England • 4 rue de Casu'gllone, Paris 75001, France * Savignystrasse 29, 6 Frankfurt Akin 1, Wcsi Gemiany

1

Hnancial Times We^nesday'Maf 3982

WORLD TRADE NEWS

V

Call for Australia steel

curbs angers Japanese

BY MICHAEL THOMPSOW-NOB. IN SYDNEY

Metalexport
sees sales
to West
down 20%

JAPANESE steel producers
have been angered by the
application of BHP, Australia's
largest company, for increased
levels of protection for the
Australian steel industry.

The anger has- surfaced just
as Mr Malcolm Fraser, the
Prime Minister, has been
expressing satisfaction about
U.S. reaction to an Australian
plan for the reform of world
trade.

In Washington earlier this
week. Mr Fraser outlined to
President Reagan plans for a
freeze on current levels of
protectionism, long-term reduc-
tion of trade harriers and/ the
abolition within five years of all
export incentives.

The Japan Iron and Steel
Exporters Association has said
it views moves to secure higher
levels of protection for the
Australian steel industry as a
** deplorable development.’'

It has asked the Department
of Industry and Commerce in
Canberra to determine whether
the Australian economy as a

whole has suffered significant
injury as a result of higher im-
ports of steel products.

The Japanese producers have
told the Australian authorities
that extra protectionist
measures, hastily resorted to,
would prove detrimental to
development of the Australian
economy.

Application for temporary
assistance in specified steel pro-
duct areas have been made by
BHP and its subsidiary, John
Lysaght Australia.

It is up to the Department of
Industry whether to refer the
application to the Temporary
Assistance Authority.

Last weekend, " Mr Brian
Loton. BHP’s managing director,
sard the future of the company’s
steel making operations might
depend on whether import safe-
guards were forthcoming.

He said that at present, BHP
was trimming its operations,
rather than implementing large-
scale closures. He. declined to
comment on estimates that the
company might lose more than
A? 100 m (£ 58.8m) on steel-

making this year.

The Japanese producers claim
they have been exporting hot
rolled strip, sheet and plate
steel products to Australia on a
stable and regular basis for
many years.

BHP said' in Melbourne yes-
terday that it had no comment
tor make on Japanese criticism
of ats application for temporary
assistance.

On Monday, BHP raised prices
of its iron and steel products
by an average of 4.25 per cent.
It spoke of the rising volume
of Japanese and Korean imports
and of cost escalation, such as
the award of a 38-hour week to
steel industry workers.

Following his talks in Wash-
ington, Mr Fraser is due to out-
line his proposal for reform of
world trade to the Canadian and
Japanese Prime Ministers, be-
fore visiting South Korea.

The fear in Canberra is that
Mr Fraser’s initiative comes too
late to have any possible impact
on the Versailles economic sum-
mit early next month.

By Ch ri rt oph tr Bobjoski In
Warsaw

METALEXPOBT, Poland*
machine tool foreign trade
company) expects sales to the
West this year to drop by
some 20 per cent compared
with 1981.

Hard currency exports of
machine tools last year were
worth SlOTJhn, compared with
sales worth $73J»m in 1980,
according to Mr Stanislaw
Trzeeiak, a senior company
executive.

Warning on
Tokyo import
packages

Removal of farm product
quotas ruled out

By Chari e* Smith,

Far Bast Editor in Tokyo

BY OUR WORLD TRADE STAFF

JAPAN has vi.rtually ruled out . said there should be no bi-
any quick removal of import lateral negotiations unless Mr

quotas on agricultural products Brock withdraws his demand.

JAPANESE import liberalisa-
tion packages, no matter how
good, will not in themselves
accomplish the changes
Europe is seeking in its
trading relationship with
Japan, the leader of a delega-
tion from the European
Parliament said yesterday.

Sir Fred Warner, a
former UK ambasador to
Tokyo, said that administra-
tive action by Japan to open
Its market would not produce
the desired results because
of differences between the
Japanese and European
economic systems.

“So far. we have always
looked at our problems as if
Europe and Japan were the
same kind of capitalist
economies which could fit
into the same framework.
We now have to question —
whether it is as simple and
straightforward as that."

Foreign Ministry officials said
in Tokyo.

This points to rising resist-
ance within Japan to agricul-

They said Mr Yoshio Sakur- tural concessions for the U.S.
auchi, the Foreign Minister, which has made easier access to

had written to Mr William the Japanese market for farm
Brock, the U.S. Trade Repre- products one of the key demands

sentative, noting it would be in its sustained attacks against
very difficult to include the lift- Japanese trading policy.

iog of agricultural quotas in the Underlying This pressure is

package of trade liberalisation the growing U.S. deficit on its
measures expected later this bilateral trade with Japan.

month.

Increasingly the pressure has

Mr Brock had written to Mr become focused ou means of
Sakurauchi demanding that opening up the Japanese

liberalisation of the 22 quotas market

2™*%, yfcd wnl. Im part, But ^ u. S . portleo' Jus

weakened, # T5*

about quotas ou beef aud dtrus ^on iU 0^

rElng a meeting earlier Wotas ou sugar impom.

in the month between U.S. and Mr Koichi Karo, chairman of-

Japanese officials in Geneva, it the agricultural committee in
was agreed to hold further the Liberal Democratic Party,

talks on access for agricultural has said Japanese concessions

This means that industry
Is not interested in produc-
ing for export markets where
quality requirements are
higher than at home or In
Comecon for that matter.

products.

to the U.S. on farm products

But officials in the Agricul- would, in any case, be worth
ture. Forestry and Fisheries only $700m to U.S. exporters

Ministry and in the dominant while last year’s U.S. deficit
Liberal Democratic Party have with Japan was S18bn.

The call for devaluation is
common in industry, and the
Government is to review the
situation in the second half
of the year.

WHO WE ARE:

A leading firm in consumer goods, successfully
introduced in all pharmacies, wholesalers of
the sector, communities, clinics, hospitals and doctor's

consultancies.

We are under German Management and our head
office is located in Madrid.

WHAT WE ARE
LOOKING FOR:

A financially strong firm that is interested in a joint
venture and whose products lend themselves
to the diversification of our own range of products.

WHAT WE OFFER:

An efficient sales organization, modem factory
installations and laboratories, a warehouse with high
pallet racks, an administration building, telephone,
telex. A very good location.

No parking problems .

fa yow firt contort wi& is ^

Baron de Champourcin
C / Barquilio, 23
Madrid -Spain
Key: HS 95035

Kenneth Gooding examines one effect of the current recession

flf>£

Hard year

Mr Trzeeiak, speaking in
an interview for the Rynki
Zagraniczne ■ newspaper,
blamed the decline in
Poland’s official image abroad
for the expected fall. The
U.S. dockworkers’ boycott of
Polish goods was also hurting
Polish sales to the U.S.
market which were worth
$12 .3m last year.

- Sales to Great Britain last
year were worth just $270,000.

As for trade with Comecon,
Mr Trzeeiak revealed that, in
view of Poland’s problems in
getting hard currency for
components, agreements for
machine tools sales to the
Soviet Union would see the
Soviets providing either the
necessary components from
the West, suitable replace-
ments or simply the hard
currency so that Poland coaid
buy them.

This bard currency input
would he treated as a form
of down payment on the deal,
Mr Trzeeiak said.

Mr Trzedak also said that
the Palish zloty must be de-
valued further from the pre-
sent 80 zlotys to the U.S.
dollar to around 120-130
zlotys.

At the present rate Mr
Trzeeiak says 65 per cent of
the machine tools sold to the
West M Are not as profitable
as we would like them to be,”
a euphemistic way of saying
they .are being produced at a
near loss.

A WARNING that 1982 will be
the most difficult year yet in
the current recession for the
European commercial -.vehicle
industry is given in the latest
report from DRI Europe, the
former Economic Models group.

Profitability will fall and this
will speed up the coming shake-
out among the manufacturers.

"The prop to production pro-
vided by booming export
markets v/ill be removed as the
oil earnings of key customer
countries are squeezed. So
there will be considerable
pressure on those • manu-
facturers struggling to maintain
a presence in the industry,” the
report suggests.

Among those companies over
which DRI puts a question
mark are MAN of West
Germany and Leyland of the
UK

MAN’S recently enhanced
profitability is owed to its
huge export success and there-
fore it is "more exposed in
1982 as its position on the
home market- has deteriorated.”

DRI points out that Leyland
has suffered a deterioration' in
both profitability and market
position. The “enforced con-
traction of its manufacturing
base is indicative of the way
other companies will find that
the present profitability and
probable future scale of their
business cannot justify a high
level of vertical integration and
wide product range.”

The report maintains Leyland
“ has been pushed into extensive
re-integration and contraction.
Its dependence on the domestic
market has increased as the high

COMMERCIAL VEHICLE PRODUCTION
(All vehicles)

Belgium
France
Germany •
haly ,
Netherlands
Spain
Sweden -
UK

Total

(8 countries) ;

mi

(Actual)

404,690

390,744

. 159,007
70/34
10M16

50,340

214,461

418.762

357,670

150,361

12,093

121*04
. 47,213
261,236'

1983-

(Fo recast)
431,462
383,499

15SJ35 .

MW

nrj2o~
50,998
284, T66

-Growth

442,180.

425,347 :

167,464
17.374-
mior
•- 57,857
284,313

1,288,564 1,420;142 1,497,980 1.S24.644

Sourca; DRI i

value of sterling and delayed
product -launches have eroded its
share of traditional African and
Middle East markets. Its Euro-
pean showing remains very
weak."-

As for Leyland's home market,
DRI ponders ■ whether the.
present recession in the UK
Industry “ represents permanent
contraction or an. unfortunate
interlude" and maintains that
the recovery of the British
industry " depends critically on
export prospects.”

It suggests Ford and the
General Motors’ subsidiary, Bed-
ford, are the "only companies
with a realistic chance to suc-
ceed in . rebuilding exports to
Continental Europe — a market
which will assume increasing
importance as exports beyond
Europe fall bade.”

The report is pessimistic on
this point as DRI does not
anticipate the UK-. Clawing back
lost competitiveness. “Indeed,
the UK is likely to remain on
the basis of domestic costs and
relative exchange rates one of

the higher-cost bases from
which to export

“As Opec demand weakens
this year and next, UK exporters
will continue to experiencediffi-
culty in holding their share; of
total -European exports, Produc-
tion. levels: will remain signifi-
cantly below 1980 totals.” • . \

The threat to : the West
German industry foreseen by
. DRI is the expansion of
Japanese light commercial
vehicle exports. .

The Japanese ore contributing
to “a serious contraction” of
business for the German light
commercial vehicle producers'.
Volkswagen has born the brunt
of the Japanese incursion into
the European light commercial
markets,, along with Ford, the
report adds— 11 and is likely
progressively to produce a
larger proportion of its commer-
cial vehicle output outside the
high European cost base.” •:

DRI insists that “even in
the free trading German
industry- concern is mounting
and the influx of Japanese com-

mercials is likely to become a
more pressing issue in 1982 than
the presently spent challenge of
Japanese car imports ” -

All Europeanmatmfacturers of
light commercials increasingly
will be confined to European
-markets as the Japanese domi-
nance of the- few but fast-
growing developing world
markets has been established:

- •” Faced with rising import
penetration in.. Europe itself,

. van producers are unlikely . to
be able to raise output While
the - scale of the decline is not
dramatic* ft will prove to he
permanent.”--. ...

DRI also points out that, now
Nissan of Japan has control of
Motor - Iberica in Sp£W, that
country could develop as a
major point of- entry for: vans
of Japanese origin into the EEC,
“ untrammelled by gentlemanly
restrictions/’ -■

DRI’s -European Trucks, fore-
cast report provides forecasts of
truck, registration, production,
imports, exports, and vehicle
fieets-in-operation all by de-
tailed gross vehicle .weight
categories for- eight countries
(Germany, France. UK,- Italy,
Spain. Sweden, Netherlands and
Belgium). .

It says that across. Europe
substantial pent-up. demand for
commercial vehicles is build-
ing, “ much of which should be
realised as interest rates fall
more permanently and as the
European domestic economies
again stir-to life in I9S3-84. '

European Truck Forecast
Report; DRI Europe;. 30, .Old
Queen Street , London SW1H
9HP; $1 £00 or £650.

$

Soviet time limit on pipeline

BY JAMES BUXTON IN ROME

Thailand gas
venture signed

ITALY, which has still not de-
cided whether or not to take gas
from the new Siberian pipeline,
is understood to have been set
by the Soviet Union a new dead :
line of July 1 by which to make
its decision. Two previous dead-
lines. April 1 and May 1, passed
without a decision.

The Italian Government has
not ratified a January agreement
between the state gas concern,
Snam, and its Soviet counter-
part, Soyuzgasexport, because
of dissent on the issue in Slg
Giovanni Spadolini’s .five-party
coalition Government. The
agreement wag for the purchase
of Sbn cubic metres of gas a
year at the same price as that
to be paid by West Germany
and France.

But the Soviet “deadlines’*

are something of a formality,
since both sides know the Soviet
Union would be prepared to
wait almost indefinitely in the
hope of an Italian acceptance,
as a time when it is under con-
siderable economic pressure and 7
when other European countries
— notably the Netherlands and'
Austria— are cooling their in-
terest in Soviet gas.

- While Italy believes it needs
Soviet gas, the Social Democrats
and to a lesser extent the social-
ist parties oppose taking it,
mainly on strategic grounds.
They favour greater dependence
on Algeria, with which Italy has
yet to agree on a price for 12bn
cubic metres of gas to pass
through the already constructed
Trans-Mediterranean pipeline.

Snam is sticking to a. 1977

agreement with Algeria which
would mean a price at the
Italian border of. $4.18 per mil-
lion - British . thermal' units
(btu’s). Algeria is " seeking
around $6 per m btn’s.

The Government “ accepts., it
willliave to pay a premium on
the basic price in order to
secure both gas supplies and
Italian access to Algerian con-
tracts, many of which have been
held up by the long-running
dispute. Algeria . succeded
earlier tb is. year, in obtaining
from France a price 20 per cent
more than the “market” price
of gas.

The Italian Government is
shortly expected to decide its
position for negotiations at a
Government, rather than com-
pany levei.witb Algeria. . *

By Jonathan Sharp in Bangkok

UNION OIL. of California and
-tiro' Japanese partners' have
signed a. contract to open new
natural gas fields in the
Thailand Gulf, a .fresh step in
Bangkok’s efforts to reduce
dependence on imported energy.

Union, the major partner,
started supplying gas from the
.Gulf last September via the
world’s longest -(265 miles)
underwater pipeline. A 30-mile
extension wHl be added to the
pipeline ih'orderto tap the hew
fields,-:'- • . ' . ■

m 1

’i.i ■

JiUii -

Union's Japanese partners in
tiie new contract are Mitsui Oil
Exploration and the Southeast
Asia. .Petroleum Exploration
company.

iii-jpn ?•- ■
■** »:■ .

SIX' •

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"FR

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;*■■ .-Vx - ce

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p/rc

Financial Times. Wednesday May; 19 1982

UK NEWS

warns NCB to
stay competitive

BY RAY ©AFTER, ENERGY EDITOR

THE ELECTRICITY generating
industry will have the capacity
to bum more than 80m tonnes
of coal annually until at least
the turn of the century. This is
in spite of the' nuclear pro-
gramme. and planned" closure of
old coal-fired plants and the
advent of alternative energy
projects, said Mr Fred Bonner.
acting chairman of the Central
Electricity Generating Bo?rd.

The combined coal-burning
capacity of the CEGB and the
South- of ■ Scotland Electricity
Board would represent about a
third of all the coal. mined in
Western Europe, said Mr
Bonner, speaking at a conference
on coal technology in London.
The capacity was the same ton-
nage as the UK industry was -
burning at present

But Mir Bonner warned the
UK mining industry, and the
National Coal Boaid in parti-
cular, that It must remain
competitive.

“It would be a tragedy if the
potential for future coal con-
sumption by the CEGB was to
be inhibited by. an un willingness
on the part of the mining
industry to recognise economic
reality and the need for change,”
he said.

"The surest guarantee of
reducing our coal -burn Is for
the price of coal to increase at
a faster rate than our customers
are prepared to accept.”

Mr Bonner said that through
an understanding with the. Coal
Board, the CEGB used its "best
endeavours” to bum UK coal.
This understanding was causing
some problems for the CEGB,

especially during the present
period of economic recession
and lowered elec t ricity demand.

The pressures had been in-
creased by the NCR's practice
• ’of ’, supplying a slightly higher
grade of coal with more heat
value. As a result less coal was
needed to generate a given
amount of electricity.

The CEGB should not become
over-dependent on coal, said Mr
Bonner. New nuclear plants,
together with renewable sources
of epergy, would be needed to
-replace old nudear power
stations and expensive oil-fired
plant as well as to meet any
growth in demand.

Sir Derek Ezra, chairman of
the National Coal Board, said
coai production was “ a high
technology industry ” which had
“re-emerged as the nation’s

■ biggest single fuel resource with
a real future.”

Fluidised bed combustion was
extending the market for coaL
This use could increase four
times to 40m tonnes a year in
the next two decades. More
. than 30 fluidised systems were
already operating in industry,
agriculture and commerce:
Many more were planned as
companies looked at converting
from, oil-fired units to modem
coal-burning plant.

Investment in new technology
was paying. off. Last year. pro-
ductivity at UK collieries

■ reached record levels. The trend
was continuing— in the first six
weeks of this financial year
productivity had risen by a
further 3.3 per cent against a
year ago.

Tough Manx budget cuts
capital spending by £8m

FINANCIAL TIMES REPORTER

CUTS IN government spending,
an end to - coal and petrol
subsidies and a doubling . of
prescription changes were the
main iterhs in the Isle of Man
budget introduced - to Tynwald,
the island parliament, yesterday.

Hopes of a farther cut in
Income-tax, which stands at a
flat rate of 20p in . the pound,
were dashed, however, by Dr
Edgar Manri. who as chairman
of the finance board is in effect
the Manx Chancellor* V .

For the first time in many*
years there wiH be no increase
in tax allowances,

The tough budget arises from,
the island's heavy borrowing at
a- time when the economy is
showing no growth, and
unemployment has risen to
record levels. Dr Mann esti-
mated he would save £8m
through cuts in capital schemes.

No local-authority houses will
be started this year and a cash
limit of £5m has been imposed

on the Government’s , loan
scheme for house purchases.

In addition:

• Prescription charges are
doubled to 60p

• The mortgage rate goes up
1 per cent to 10 per cent 1

• Vehicle licence fees rise 10
per cent on June 1; taking the
annual licence for a medium-
size saloon to £30

• Revenue chargps are to be
imposed on - planning appli-
cations.

The Manx Government will
follow the British Government’s
increased rates of child benefit
and retirement pensions and will
also increase age benefits paid
to those over SO from 25p to
£1.25p a week.

While calling for an end the
British Government’s power to
impose exchange controls on the
Island’s economy, the Manx Gov-
ernment itself will impose strict
controls on finance institutions
- wishing to set up. businesses on
the Island.

Anti-EEC judgment won
by Rio Tinto subsidiary

BY A. H. HERMANN, LEGAL CORRESPONDENT

A BRITISH company yesterday
secured a victory in the I hrnv
pean Court, Luxembourg, which
will be welcomed 1 by European
lawyers. The company is A M.
& S. Europe, asubsidiary of. the .
Rio Tinto-Zinc Corporation.

• It succeeded, against the EEC
Commission, in establishing
that correspondence between a
company and- its legal advisers, .
though not its in-lionse lawyers,
is protected by legal privilege
and cannot be seized by the pora-
misvon's inspector.

The court also rejected the
commission’s contention' 'that,'.,
as far as such privilege exists,
it should be up to its own in-
spectors to detprmnie whether
a particular document deserves-
'protection and should .be- .exr.
eluded from the evidence Used
by the commission against the
investigate oampany. .

The case arose from investi-
gations into, a number of zinc-
producing and trading com-
panies which the commissin-i
suspected of operating a price
!■ and market-sharing carteL

On February 20 1979 three of
its inspectors arrived at the
premises, of A.M. & _S. with an
-authorisation to investigate.
"They took away ‘about S5 docu-
ments arid! eft a written request
for more. These were supplied,
with the exception of corre-
spondence between the 'company
and : ks solicitors and between
the solicitors and counsel. .

Excluded also were internal
memoranda to and from, the in-"
house lawyer. The company
claimed legal privilege for _all
these documents but offered a
statutory declaration and more
information through solicitors.

. The commission answered w
adopting a . decision claiming
that “ Community competition
legislation does not provide for
anv protection of legal papers.

It "was willing, however, to
abstain .from minis in evidence
correspondence which its own

inspect in mwi’d find con-
cern points of law or prepara-
tion for defence.

The appeal by A.M. & S.
against this decision was sup-
ported by the consultative com-
mittee of the EEC Bars and
Law Societies and by the British
Government. The French Gov-
ernment sided with the com-
mission.

The Advncate General who
was assigned to the case was
Mr .T-P Warner, now a British
High Court judge: He concluded
that all- member-states protect
confidences between a lawyer
and his. client, though they
differ in approach..

Consequently he held that
legal, privilege must also be seen
.as part of Community law. It
would be wrong For the commis-
sion to determine which docu-
. merits deserve such protection.
In ■ his v ; .~v/ such disputes
between . the commission and
parties should hr decided by
national courts or the rountry
where the investigation was
taking place.

The court obviously did not
welcome the proposal that con-
trol of these sensitive matters
should go to national courts. In
a 'search for another solution it
took the unusual step of reopen-
ing oral hearings and ordering
that the bench should be shown
the: documents for which legal
privilege was claimed.

Yesterday’s judgment indi-
cates the court found that the
scruitny of such documents
could be carried out in Luxem-
bourg. It adopted Mr. Warner’s
conclusions on the principle of
legal privilege in respect of
outside lawyers and said that in
the case of a dispute the Euro
pean court would determine
whether a particular document
should enjoy such protection.

■The appeal was allowed- and
the commission’s decision re-
quiring delivery of the contested
documents was annulled.

TV flight
details
service
launched

4y Lynton McLain

DIRECT ACCESS to airport
flight ^formation in the office
or home was launched by
American Express yesterday in
partnership with British Tele-
com's Prestel computer-con-
trolled television information
service and the British Air-
ports - Authority.

The SkyGuidc service Jinks
information from Heathrow.
Gatwick and Manchester to all
Prestel subscribers in Britain
and on the Continent.

The cost is a few pence, typi-
cally 13p a minute. Information
on an individual television
screen is . the same as that on
the large flight information
boards at airports.

Mr Kenneth Baker, Minister
for Industry and Information
Technology, who launched Sky-
Guide in London, said it was
“.the sort of service which will
be commonplace in two to three
years.”

Britain already had a lead in
information technology and by
the New Year, "we will have
the largest installed base of tele-
text television sets, equal to the
rest of the world put together."

American Express has
started talks with British Rail
on the possibility of a similar
service for probably only the
main Inter-City services.

CBS captures a heavyweight title

SIR WINSTON CHURCHILL’S
wartime memoirs and his
History of the English Speaking
Peoples were the star per-
formers <on the publishing list
of Cassell Ltd for many years
along with the novels of
Nicholas MonserraL above all
The Cruel Sea.

Founded in 192S, Cassell
thrived on these titles for the
first ten years of its life as a
public company after 1949. In
the 1960s, it expanded into
specialist areas like medical
publishing, which it entered via
its acquisition in 1965 of Bail-
liere, Tindall and Cox, a prom-
inent medical and veterinary
book publisher.

Now Cassell has been
acquired by a U.S. company in-
tent on adding Cassell's
specialist strengths to its inter-
national publishing business.

But between the late 1960s
and this week's change of owner-
ship, Cassell's story has been
one of sad decline as the com-
pany struggled to mtaintain an
ailing general publishing busi-
ness. ..

It was purchased in January
1970, by the. U.S. publishing
house Crowell. Collier, Macmil-
lan — which later changed Its
name toMacmillan Inc and has
no connection with the London-
based Macmillans— -in a deal
worth £2 53m. The price lag -on
this week’s sale by Macmillan
has been a closely guarded
secret.

Some of the problems of the
last decade were peculiar to
Cassell— notably its celebrated
legal battle in 1972 over David
Irvine's 'Hie Destruction - of

Duncan Campbell-Smith and David
Lascelles in New York report how the
network found the right 4 fit ’ in Cassell

Convoy PQ17, which left
Cassell with a £25,000 libel fine
and substantial costs.

Other problems it shared with
•the publishing industry
generally— excessive overheads,
unduly extended- title lists, poor
marketing. Cassell was losing
money heavily by 1977. When
publishers’ sales dropped
alarmingly two years later, it
was forced, into the first of a
series of reorganisations.

Cassell’s new owner is CBS,
best known as the U.S. TV
network that nurtured Walter
Craniate. CBS already has one
UK publishing subsidiary, - Holt-
Saunders based in Eastbourne.
Mr Robert Kiernan, Hoi t-
Saunders’s managing director,
has taken charge of Cassell and
believes the company may now
be “close to break-even point."

CBS has been a considerable
force in the publishing business,
and the Cassell deal satisfies
two of its goals at once: it
enhances the CBS position in
fast-growing foreign markets
and it heightens the specialisa-
tion that CBS sees as the key
to Rs future growth in the world
of books.

Until last year, CBS was one
of the leading mass paperback
publishers with revenues of
$5 10m and profits of $42 m. But
it was forced to cut back its
paperbrck operations for anti-

trust reasons, so it decided to
pull out altogether and concen-
trate on a few well-selected
markets instead.

Its p ublishing ' division
includes a large educational
unit: Holt, Rinehart and
Winston fwhich publishes
general books), Dryden Press
and Saunders College, and a
professional publishing unit
consisting mainly of W. B.
Saunders, a leading U.S. medical
publisher.

CBS also has publishing sub-
sidiaries in Canada, Europe,
Australia and Japan, one of the
largest of which is Holt-
Saunders, which publishes
medical and educational books.

However the growth - of the
U.S. market for CBS has been
hampered by the decline of the
school population and cutbacks
in official spending on educa-
tional materials. So the com-
pany looked abroad for more
business, particularly in the
Third World with its huge
school-age population and mass
education programmes.

Cassell fitted neatly into
these plans, CBS says.' because
it publishes similar kinds of
books and enjoys the UK’s
special advantage in the
Commonwealth.

. “We had been looking for
some time for the right opera-
tion." said Mr James Mirrielees,

president of International
Publishing. “ Cassell was an
excellent opportunity because
it is a very good fit”

CBS and Cassell overlap as
well as being a good fit, how-
ever. and theer is some apprehn-
sion among employees In London
about redundancies, especially if
Cassell is merged with Holt-
Saunders.

With about 90 publishing staff,
Cassell is very much leaner than
it was in 1975. The industry
generally has *•* recovered its
poise after some fairly drastic
remedia action " according to
Mr Eric de Bellaique at Grenfell
Colgrave.- one of the few City
analysts to follow it. Cassell’s
second U.S. proprietor looks
likely to do better than its first.

Competition for
helping elderly

THE GOVERNMENT is to run
a competition- for groups con-
cerned with the well being of
elderly people.

The judges wUl be looking
for projects, within the UK, that
help elderly people in ways that
are new. They will be particu-
larly interested in projects run
by elderly people themselves.

The first prize will be £2,500.
with three runner-up prizes of
£1,000. They will - be awarded
towards the end of this year.

The panel has finalised the
competition details and entry
forms are available from
Vaughan Rees, Room B1506,
Department of Health and Social
Security, London SE1 6BY.

Training for
employed
workers
criticised

By Michael Dixon

PERSONNEL MANAGERS and
educators were irritated yester-
day by ’•quarter-hearted” pro-
posals from the Education De-
partment to improve training
for employed people, from man-
agers to shopfloor workers.

Their criticism followed an-
nouncement. by Mr William
Shelton, Parliamentary Under-
secretary for Education, of the
plan to a 200-strong audience at
a London conference of the Bri-
tish Assopiatirn for Commercial
and Industrial Education.

He said only about £2m of the
£12bn education budget would
be diverted to develop such
training. He was deputising for
Sir Keith Joseph, the Educa :
tion and Science Secretary, who
had been called to a . Cabinet
meeting.

Previously Mr Shelton had
said the Government was com-
mitted totaking effective step?
to provide the so-called profes-
sional, industrial and commer-
cial updating programmes
(Pickup).

Of £2m to he diverted to
Pickup, from other activities,
half will be absorbed in a trans-
fer by the Open University from
academic to work-related
courses. The Further Education
Curriculum Review and Devel-
opment Unit will usesome of the
rest to sponsor experiments with
new programmes

f. ; . t . ;

;-r ; J J?-:

advertisement series

“Insight into Japanese Technology ”

will not appear tomorrow and restarts from Friday,
May 21, every weekday until June 4.

Slips

II ig|

Lviv

-

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■'St-.A ■: •

*5 5-***?./

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fisisa $•

Ricoh: Expanding its horizons
beyond office equipment

One of a secies of interviews by

Mr. Dick Wilson and Dr. Yotaro Yanase V-Y/?- - j

,

'i

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•--VAi ny.

MM

Ricoh began in 1836 as a maker
of sensitised paper. Within a
couple of years it was producing
cameras and in the 1950s it
branched into office equipment.

Although the company is known
mainly for its photo-copying ma-
chines, it has added large scale
integrated circuits (LSIs) to its re-
pertoire, and its new XR-S solar
powered camera recently gained
enormous worldwide acclaim.

Last year Ricoh’s net sales ex-
ceeded $1.4 billion, two-thirds of
them domestic and only one-third
export. Total assets were put at
$ 1.6 billion.

By products, 73 per cent of sales
. were copiers and 17 per cent other
office equipment. Over half of all
exports went to North America.

Some 16,000 people are- employ-
ed, mostly in the ten factories in
Japan where there is no trade
union. About 1,300 of the em-
ployees work abroad at Ricoh
companies in the United States,
the United Kingdom, West Ger-
many, the Netherlands and
Switzerland.

The company uses as its motto
some lines written by its founder
under the- title San-Ai, which
means “Three Loves”: <f Love
your neighbour, love your country
and love your work.”

- r . ’ r. .
■ ■_ y.v.- •*. '

M'r

--V -.v/.." t.-

Ricoh, the famois information equip-
ment manufacturer, conducts its R & D
in Technology Division head-
quartered in Tokyo. “There is a good
reason for the name of this division,”
comments the Executive Vice-President,
Dr. Hirosuke Yamashita. “We used to
have a research institute a decade ago
doing pure scientific research, but it
became unpopular because it (fid not
contribute lo profits. Now we are on a
much more practical footing.”

And yet Dr. Yamashita’s R & D staff of
about 1,000 enjoy a budget of some 30-
million pounds a year.

Ricoh is beginning to branch cut from '
its original speciality of copiers, of which
it has become the biggest supplier in the '
world. It is also the third largest producer
of facsimile machines, and in Japan it
stands among the top 4 producers of office
computers and English word processors.

Dominance. in
office copiers

.V\ i -

Its dominance in copiers is very strong,
faking about half of the Japanese market
and almost a quarto- of the world market

Copiers and sensitised paper still ac-
count for more than 70 per cent of sales,
but electronic transmission equipment is
now creeping up— to 14 per cent in
1981—' while optical equipment now takes 9
percent.

This high degree of specialization pays
off in terms of original products develop-
ment A couple of years ago at the Han-
nover Messe, Ricoh surprised the in-
formation world with its compound image
editing system GT-1000 combining a word
processor with an intelligent copier,
which features a laser printer, into one
remarkable machine.

At the same time Ricoh brought out an
English word processor which could hold
about-70 pages of A-4 typescript oh each
disc, with the optional facility of com-
munication with another machine else-
where.

Yanase; What are the current goals of
your Technical Department’s pro-
gramme?

Yamashita: Most important, we have
to enhance our capacity in advanced
electronics. First of all, we must in-
crease our awareness of licensing and
patents. We may be small compared
with big corporations like Hitachi, tat
we have taken out relatively many new
patents. .

Secondly, research on new materials
is also essential.

Thirdly we have to develop micro
electronics* It is a big shift from simple
machinery to the complex electronic
equipment of today.

A few years ago we launched a plan to
develop media tronics, the area where
mechanics and electronics meet The
trouble is that the speed with which
electronic technology is developing is
usually faster than our plans or sched-
ules. We have to work hard to catch up,
and it is very important that we keep
. both our mechanics and electronics up-
dated.

Wilson: Do you make your own chips,
or do you buy them? -

Yamashita: in America there are
several special circuit makers, tat in
Japan the LEI manufacturers are
pursuing their own Office Automation
production programmes and the tike.
There is no specialised LSI manu-
facturer any more, and that means we
have to develop our own chips. -
We do not intend to make general
category LSI’s, but only certain types
needed for our particular products,
especially facsimile machines and
copiers.

We started planning factories for tins
purpose a few years ago and have now
recruited the sdentists.

We are producing only the C-MOS cir-
cuit, winch is more energy^saving, tat
wc plan to extend later to the more
advanced, very large scale integrated
circuits.

Yanase: You will be using these in
your copiers and facsimile machines?

Yamashita: Yes, for the improvement
of these lines of products. But we are
now extending the design to a new area
outside Office Automation.

£ New
memory capacity

As for the development of Office Auto-
mation, Ricoh is not different from other
manufacturers in preparing itself for a
big market, by emphasising the two
major technical developments of digital
equipment and programming in order to
select the most suitable memory for each
machine. The target is to develop a
memory capacity which can control, store
and retrieve information. The existing
facsimile and word processing products
are based on telex equipments mid have
only a small memory capacity.

Yamashita: This capacity has to be
enlarged by optical memory and
especially the laserdisc with which
Ricoh hopes to improve the present
optical memory to make it both
erasable and rewritable. Beyond that,
however, the. various Japanese manu-
facturers have different ideas and
concepts. One problem is the disc
memory and how to make it durable.
Also, the frequency oE the laser beam
remains unstable. But that will all come
together in the future and Ricoh pre-
dicts that in three years time office cus-
tomers will be provided with a com-
pletely new OA system.

This is not only a question of catching
up electronically but of putting in (he
appropriate mechanical ability.

The Technology Department which Dr.
Yamashita runs for Ricoh is about eight
years old, and controls two centres: the
Numazu Research Centre which investi-
gates new materials such as semiconduc-
tors, and the Ricoh Electronic Develop-
ment Centre in Osaka established a year
ago to manufacture semiconductors.
There are, incidentally, two subsidiaries
in the US dealing with R & D — Ricoh
Systems Inc., specializing in copiers, and
Scientific Telecommunication Systems
Inc., dealing with facsimile equipment

Wilson: How far are you involved now
in the exchange of technology with com-
panies in the US and Europe.

'*■***:

Dr. Hiroaufee Yamashita
Executive Vice President

Yamashita: We do not discriminate be-
tween overseas or domestic technology.
All advanced technology will become
international. Ricoh has been quite
consistent in disregarding national
boundaries in favour of business merit.
We used to acquire technology by
- buying it from other companies, tat
times have changed.

Even if we wanted to, we could uot
buy technology in that way any more.
We have to exchange patents.

Our patents have become an asset
enabling us to acquire patents from
other companies.

In the electronic and LSI areas we
particularly do not discriminate. We
simply want that best.

Yanase: What kind of technology do
you need to buy?

Software technology

Yamashita; What we do not find so
readily here is software technology, in
which American companies have the
highest standard. The micro CPU is an
example, and we also admire West
German machining technology.

Wilson: Are you going to manufacture
more abroad, given your big share of
the market?

Yamashita; We have factories in the
US and other countries. Naturally, we
have given some thought to manufac-
turing in Europe, tat we have not
reached the stage of deciding where and
when.

We have to take into account such
problems as regulations laid down by
the various European governments, and
availability of the components and parts
which we will need.

Ricoh’s ultimate plan is to establish
locally based operations that contribute
to regional economic prosperity. De-
velopment, obviously, must follow a
mutually advantageous path.

» i r"

Ricoh Co., Ltd.

Head Office: 15-5,Minami-Aoyama,
1-chome, Minato-ku, Tokyo, Japan.
Tel: 03-4793111.

Ricoh U.K., Ltd.:

Ricoh House 24-32 Stephenson Way ,
London, NW1.

Tel: 01-3880351

— • -T— '

i

UK NEWS

Oil tax

by select

BY RAY DAFFER, ENERGY EDITOR

THE GOVERNMENT'S North
Sea oil tax policies were
attacked by an all-party com-
mittee of MPs. The Consern-
tive-led energy select committee
said yesterday the “ complex
and cumbersome ” tax system
was endangering future
exploration and production.

Supporting the oil industry's
views die committee said the
tax system needed a thorough
overhaul. Mr Ian- Lloyd (C.
Havant and Waterloo), the
committee chairman, said: “If
we have not passed the point
of real danger then we are very
close indeed." The committee's
attack coincides with an
industry campaign for tax
changes.

The UK Offshore Operators
Association, supported by tile
Association of British Indepen-
dent Oil Exploration Companies,
is urging Sir Geoffrey Howe,
the Chancellor, to redraft part
of the Finance Act to make the
proposed tax system less
onerous. The trade associations
are also calling for more
fundamental changes in next
year's Budget.

To support the industry's

plea, several major operators
are providing the Inland
Revenue with details of the way
the tax structure is affecting
development of offshore oil-
fields.

“The tax is too high, uncer-
tain and in some cases retro-
spective. Taxes should be
certain, seen to be certain, and
should not be varied," Mr Lloyd
said.

He was commenting on the
select committee's report on
North Sea oil depletion policies.
Committee members felt tax-
ation was to some extent inhi-
biting development and acting
as its own depletion mechanism.

The report says: ‘“Hie way
in which the fiscal regime has
developed until now is impor-
tant not just in itself but
because it seems to us to illus-
trate the excessive extent to
which the Treasury is influen-
cing energy policy."

The committee said the tax
system, at its current level,
complexity and frequency of
change, had passed the point at
wbJch its impact on develop-
ment projects could be re-
garded as “broadly neutral."

By discouraging development.

the Government ran. the risk
of. lower production, and tax
revenue, longer term.

The report said the commit-
tee accepted many uncertain-
ties facing oil companies,
including future price trends
and the unknown oil reserves.

Estimates of recoverable oil
reserves on the UK Continental
Shelf, provided’ by oil com-
panies and the Energy Depart-
ment, ranged from as low as
I6bn barrels, enough to last 23
years at current production
rates, to 32.6bn barrels.

In view of the uncertainties
there was no justification for
immediate depletion' measures
to control the pace of produc-
tion.

Instead, the committee re-
commended that the Govern-
ment’s guiding principle should
be " repletion ” through
encouragement of exploration
and development In this way,
the' report said, the UK might
avoid an undesirable sharp run-
down in production in the
1990s and beyond.

Third Report from the
Select Committee on Energy:
North Sea Oil Depletion Policy:
Commons Paper 33 7; SO £5.25.

Industry in Sontb of England
‘still well below capacity’

BY fAME5 MdDONftLD

J THERE IS little sign of any
‘ industrial recovery in London
and the South-East of England.
. says the latest survey of manu-
facturing industry in the region
. by the London Chandler of
, Commerce and Industry, pub*
t listed yesterday,
p The survey finds that the
expectations of a large number
• of companies towards the end
: of last year of an imminent
upturn in business were pre-
' mature. Manufacturing industry
is stilt running well below
1 capacity, the profitability of
, companies has been falling over
> the past 12 months, and new
: investment plans are largely at
a standstill.

There has bees a slight in-
crease, compared with the last
sravey in December, is the per-
centage of companies reporting

higher orders "but a much
larger rise in the percentage
reporting falls, " says the
report

Against this background it
seems probable that unemploy-
ment will increase, particu-
larly with the trend of new
investment away from job
creation towards plant,
replacement

On investment plans, of the
331 companies questioned in the
survey, only 30 per cent of large
companies and 20 per cent of
small companies are planning
new investment Moreover,
only a few of these investment
projects are aimed at creating
new jobs.

More disturbing, says the
report, is that 31 per cent of
large companies planning new
investment said that this would

reduce jobs, although this figure
fell to 8.5 per cent in the
small companies sector.

The survey shows a consider-
able underuse of existing capa-
city. Asked by bow much they
could expand output without
additional fixed capital or
labour costs, about 35 per cent
of large .companies reported a
capacity shortfall of between
10 and 20 per cent

A further 18 per cent of com-
panies estimated a gap of be-
tween 20 and 30 per cent In
the small companies sector, 33
per cent had capacity shortfalls
of between 10 and 20 per cent.
“21st Trend. Survey of Manu-
facturing in London and the
South East." London Chamber
of Commerce and Industry. 69,
Cannon Street. London. EC4.

Wool textile
forum fait
by industry
withdrawal

By Anthony Moreton, Textiles
Correspondent

THE FUTURE of the Wool
Textile Economic ’ Develop-
ment Committee has been pnt
into doubt since the decision
of its industry members to
withdraw from it Yesterday’s
meeting in London was

cancelled.

The National - Economic
Development Council will pnt
its operations into suspension.
The committee will meet only
infrequently. In effect it has
ceased to be a forum for the
industry.

Mr Alaxr Clough, president
of the Confederation of
British Wool Textiles and
chairman of British Mohair
Spinners, was careful not to
blame the withdrawal on the
Government

Heavy demands were being
made on its members, he said,
especially with so many
consultative processes centred
on Brussels.

But there is litUe doubt
that the industry Is dis-
appointed with the Govern-
ment's reaction to the
industry’s problems.

This is not confined to the
woollen industry. Leaden of
the British Textile Con-
federation have made sharp
attacks on the Government
for its refusal to support what
they claim is one of the most
important industries in the
country.

This dissatisfaction has
Increased for two or three
years, since the Conservatives
have been In power.

The wool industry is dis-
mayed at the way official
support is given In countries
such as France and Italy, yet
denied in Britain.

The industry was particu-
larly disappointed that . no
official response was made to
the Weiner Report, published
in December and commis-
sioned by the Department of
Industry, showing how foreign
governments aided their tex-
tile and clothing industries.

Meetings of the Utile
Neddy have discussed these
complaints. The decision to
withdraw was helped by the
ease with which the industry
now gains direct access to
Ministers.

Telecom plans for ‘wired

1 ;

H

BRITISH: TELECOM has sub-
mitted to the Government
proposals for a big long-term
programme to equip Britain
with an advanced cable network
which, it says, : would provide
a “ first-class foundation for the
information technology age."

Its plan, in a confidential
report to Mr Patrick Jenkin,
Industry Secretary, is far wider
in scope than the proposals for
an expansion of cable television
published recently by the Prune
Minister's Information Tech-
nology Advisory Panel.

The report argues that Tele-
com should be the main pro-
vider of new cables systems and
is likely to be . interpreted
widely as an attempt to ensure
that Telecom plays a leading
part in moves to transform
Britain into a “wired society."

The Prime Minister is ex-
pected to announce a new
policy to encourage the deve-
lopment of cable this year. It
will be based on the findings of
an inquiry into cable tele-
vision, chaired by Lord Hunt
of Tanworth, and on proposals
for a further liberalisation of
telecommunications being

drafted • by the Industry
Department.

Telecom says in' its report
that Britain should plan to

Guy de Jonquieres examines:
major proposals for an
advanced cable network;

develop an integrated national
network of broadband local
cable systems designed to carry
a range of advanced communi-
cations services, as well as
entertainment television.

possible tb “wife up” almost
every business andresidencein
the country; with ^advanced
services. , It / estimates, .that
cabling half' of Britain’s urban
areas would cost £3bn£4*ba. :

Though much of the capacity
would probably be used at first
to transmit television pro-
grammes, the network must be
able to accommodate many
types of communications. Other-
wise, “ the chance to provide, a
major national asset may be
delayed by many decades.”

The. report emphasises that
recent progress in technology
makes it possible to carry on
the same broadband cable tele-
vision programmes, computer-
ised information services tike
Prestel. high-speed data traffic,
live two-way videoconferences
and conventional telephone ser-
vices.

Though new broadband cable
would have to be laid in stages
over a number of years, Tele-
com expects that it will be

Telecom recommends, a dear
separation between; the organi-
sations which would lay tod
manage future broadband: cable
systems and the franchised
providers of programmes and
.services distributed on them. .
British Telecom considers

that . it is Uniquely -placed to
play a major Part as a carrier,”

It. says. Where a programme
provider required a new local
system. . Telecom would • under-
take to supply tod instal It Tor
a flat fee or rental charge.' -
To’ finance such investments,.
Telecom suggests that it would
need more freedom from the
Government's restraints -on-
borrowing. Finance could be
raised .by issuing bonds .for
specific schemes or by entering,
joint ventures with partners !

Who were not involved, in. pro-
ducing or , 'distributing pro-
grammes.-

Though Telecom stops short
•of calling for exclusive .rights to
* lay .cable systems, its proposals
are- unlikely to be welcomed by
such existing operators of cable
television systems as Redif-
fosTori andVlsionhire.. . .

. As .well as being wary of
TelecpmV commercial muscle,
these companies 'would prefer
.to have the- right to build the
= physical cable networks and to
'sdtot.tbe frptis of programme
carried 'on them.

■ . Prime Minister's Panel’s
: report, which broadly reflected
the views erf the cable television
companies, recommended that
the construction, operation and
financing : of - local systems
^should . be left to the private
sector. It'. proposed that Tele-
com’s role should be confined
largely to providing .trunk con-
- nections between regional cable
systems. - ■

Telecom and the panel agree,
however, that there is no need
for. an elaborate new regulatory
body -to supervise cable tele-
vision. Telecom -suggests that ,
the Industry - Department !
should use its existing powers 1
to oversee the technical and
.commercial aspects of cable.

Bulk butter group wins appeal

Vf RAYMOND HUGHES, LAW COURTS COJ?fiESPOND®IT

THE MILK Marketing Board
appeared to be abusing its dom-
inant position in the bulk butter
market, in breach of the Treaty
of Rome, the Court of Appeal
decided yesterday.

The apparent abuse lay in the
board’s recen decision to restrict
sales of bulk butter for export
to only four of the 20 companies
that have shared the market

The court allowed an appeal
by one- of- the 16 excluded com-
panies. Garden Cottage Foods,
against a Commercial Court
judge’s refusal to grant a tem-
porary injunction requiring the
board to continue dealing with
the company pending foil trial
of the company's forthcoming
legal action. - -

Garden Cottage Foods, which
complained that the board’s de-
cision would force it out of busi-
ness, had claimed that the boa/d
was in breach of Article 86 of
the Treaty, dealing 'With fair
competition.

It was the first time the
English courts had been asked
to give an injunction for an
alleged breach of that Article.

Garden Cottage Foods was

formed in May, 1980, by Hr
and Mrs Christopher Bunch, of
Ctwborougfa.Sussex. Last year
it handled £20m-worfch of butter,
21 per cent of all UK bulk
butter exports.

• in Much' the board told the
company that in future' it must
buy from one of the four
appointed distributors. That, .
said Garden Cottage Foods,
would make it a retailer rather
than a wholesaler, and unable
to compete in the market ■ ’

Mr Leonard Hoffman, QC, for
the -board, told the court that
the decision was a commercial
one, an attempt to get a better
price and bigger profit on its
butter. ■ ' ,

•It decided to enter into a
profit-sharing arrangement with
four distributors, chosen for
their skill, expertise and re-
sources. .

•’ The choice was no reflection
on the other 16, said Mr Hoff-
man. The board was not in a
dominant position. It handled
only 7 per cent of the bulk
butter traded in the Common
Market.

Lord Denning said It was

beyond all doubt that the board
had a dominant position ta the 1
bulk butter, market in the UK.
a substantial part of- the Com-
mon Market It dealt with :100
per cent of bulk butter in this
country.: ; :> _ V_.-

Though - Garden Gottage
Foods had been in business only
20 months it was one of the:
board’s 20 established customers
and built up goodwill, at least
with one large Dutch butter
trader.

. . Now the board was proposing
in effect to drive f6 companies
out of business. That was an
abuse of its dominant position.

There was much to be' said
for a remedy in damages, but it
was not at all certain that the
law afforded such a remedy*.
The company must be granted
an injunction or it would have
no remedy at all
Lord Justice May said it was
clear from similar cases in
Belgium tod Germany that
other _ countries .- believed
damages could be awarded, tie
and Sir Sebag Shaw agreed that
an injunction should .. be
granted.

Fidelity to sell

video recorders

FIDELITY RADIO. . maker of
audio-equipment and televisions,
is to sell ' video-recorders in
Britain from September, the
company said -yesterday.

The recorders will be made ,
in Japan by Sanyo, a licensee .
fo$ the best-selling VHS format i
dev eloped ”by ^JVC (Victor Com- {
pany of Japan). Fidelity entered j
the . television market in 1980, [
wheh. it was in serious diffi- f
culties. Televisions now account
for half its turnover.

Fidelity hopes to make video-
recorders in the UK .eventually.
No video-recorders are made in
the UK at present; though
Thorn EMI. tie' largest UK
-television-maker, has plans to]
assemble VHS videos at its
Newhsven plant

Sanyo, Which bought Philips'
Lowestoft, Suffolk, television
factory late last year, hinted 1
it would make video-recorders
In the UK Its production of .
colour televisions, however, is -'
not scheduled to . begin until .
tiiis summer. .Sanyo . is also a
licensee of Sony's Beta format
recorders.

Management Page, Page 18 ■

N

ety.

1

N:

J - frj-? r 'c

r^K*

; .••abjjs?

S'iancialrTiffles Wednesday May 19 1982

i5v>

UK NEWS

• &.

it trust funds hit £6.2bn record

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: 1 *y.*3WC WORT 1 ' -■

the TOTAL value of unit trust
funds • at the* end of April
reached £6.2ba, the Industry’s
-higbest-ever . sum, , according to
■figures released- yesterday by
the Unit Trust Association.

“ This rise of £130m on the
month reflects strong net sales
of units oyer the past IS months
. and the hi^i; level of the equity
market.'"

April sales figures show that
while: unit sales remain strong,
unit trust holders are increas-
ing their cash-in of . units and
.. are. turning over portfolios.

. April . sales . declined more
than £j(2m -on the month, to

£T3.2m, while repurchases
dropped, nearly £9m, to £38.5m.
This left net new investment
£2.6m down only on the month,
at £3 4.7m. This figure is. how-
ever, just more than half the
-net investment for April last
year, when the industry experi-
enced its best-ever sales.

Sales In the first four months
of this year were £288m. - This
is about £67m less than in the
corresponding period last year.
Repurchases were more than
£14m higher, at £158m. This
leaves net new investment £82m
lower on the period, at £129mu
This is a satisfactory figure -by

normal standards but poor by
last year’s record business.

April sales figures were
boosted by one new fund
launched in the month, the
Framlingion Recovery Trust,
and by two unitisations of
internal life-assurance funds.

Mr Mark St Giles. Unit Trust
Association chairman, was satis-
fied with the figures, especially
compared with the correspond-
ing period in 1980 when repur-
chases exceeded sales.

- Investors were showing
revived interest in UK
specialist funds and in UK
income funds.

£30,000 grant for Pankhurst appeal

AN. APPEAL - for funds to
a restore the former home of Mrs
Emmeline Paitkhurst in. Man-
. Chester has been boosted by a
£30,000 grant from the Historic
„ Buikhngs CoqinciL

The militant suffragettes’
organiartwn, the Women's
Social and Pobtrcaf Union, was
- founded at.- a meeting in Mrs
■ ■Pankhurst's 'parlour in 1903.

' The -.house,: 62 Nelson Street,
Cborlton-on-Medlodx, and its
twin number 60, are Georgian
villas, bath Grade 2 listed build-
ings. They are to -be restored
and reopened as The P&nkbvrst
Centre — a suffrage museum and
i women’s centre. . '

. . The cost of the project . has

been estimated art £500,000 and
a national appeal was launched
on March 8, International
Women’s Day, backed by eight
women MPs, Baronesses Young,
Lockwood and Seear, Mrs Marie
Patterson of the TUC General
Council and members of. the
Pankhurst family.

The building is now derelict
but the appeal organisers expect
to start work later this year.

“With this grant and others
in the pipeline we can tackle
the first phase of restoration,”
said Ms Loraa Hempstead,
project coordinator.

“There has been an encour-
aging response from members
of the pubMc, but now we hope
to interest industry, commerce

and the banks in making sub-
stantial donations.

“ We are particularly keen on
talking to companies which rely
on women for their profitability,
whether the women are tiierr
employees or their customers.”

The appeal committee has
received donations and inquiries
from as far afield as Japan,
Australia and the Untied States.

The eariy activities of the
suffragettes were organised from
the house, including the incident
in 1905 when Christ a be] Pank-
hurst and Annie Kenney were
sem lo grange ways Prison after
disrupting a meeting at Man-
chester’s Free Trade Hall
addressed by Mr Winston
Churchill.

“ !*■ *■ I

*V :a-

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S !

Corporation Limited

(Incorporated in the Republic of South Africa)

STATUTORY INTERIM REPORT FOR THE TWELVE MONTHS ENDED DECEMBER 31
1931, GROUP. RESULTS FOR THE FIFTEEN MONTHS ENDED MARCH 32 1982, AND
DECLARATION OF FINAL DIVIDEND.

Fifteen

Twelve

Twelve

months

months

• months

ended

ended

ended

3L3J982

31.12.1981

31.12.1980

ROOD

ROOfl

R000

802684

634 595

465 462

. 258006

201510

127 392

14815

12102

4672

3703

3318

238 519

185705

124074

! 53281 41382

15 768

— 24 739

22529

44349 1843

471

140889

131251

117741

109534

24 439 890
537.0

24439 890
448-2

23 491 438
‘ 336.70

Turnover

Profit before, amorti natron, depreciation and

taxaiion

Deduct:

Amortisation of .mining assets

Depredation of refractory assets

Profit before taxation

Deduct:

Taxation — South African normal

— Equalization

—Deferred

Profit after taxation

Deduct: Profit attributable to outside share-
holders in subsidiary companies

Profit attrftotiible tu. sbareboMeiB of Amcoal

Djviderafe- declared:

No:’ 116 of '25 cents per share declared

May 12 1981

No. 117 of 46 cents per share declared

November 10 1981

No. 118 of 95 cents per share declared'
May 18 1982

Number of shares iu issue-

Earnings- -per share (cents) .......

First' interim dividend per share (cents) ...
Second E&tmm dividend per share (cents) ...

Final dividend per share (cents)

Dividend cover 3*24 — 3.12 .

Net expenditure ea fixed anti mining assets . 86664 60186 46781

COMMENTS ■*'. ‘

1. The profit attributable to shareholders of Am coal of R231 251 000 for the fifteen
months to March 31 1982 represents an increase of 32.8% on an annualised basis over
the 29S0 earnings of R790S7000. This result was achieved after the introduction of
the policy of .amortisation of mining assets and after changing from tax equalisation
of the allowances arising from major capital expenditure programmes only to one
of deferred ’ taxation covering ail the Group’s coal mining assets^ .

In order to. make the .profit attributable to shareholders in Amcoat for the fifteen
months to March 31 198i directly comparable with those for 1980 the provision for
amortisation of raiding assets must be added back and this results in an annualised
earnings increase of 47.8%. '

Amco&l’s earnings , per-share on the increased number of shares resulting from the
acquisition of "Natei Anthracite Cotiiery Limited were 537.0 cents, an annualised
increase of SJ.6% -over the 336.7. cents per share earned in 1980. When the provision
for amortisation of irrirring -assets 'is added back to the results for the fifteen months
the annualised increase in earnings per share becomes 42.0%.

2. The total value of the (group’s capital expenditure programme, including the new
collieries to -supply coal for the 3 600 MW Tutuka. L&tbabo and hew station “ E"
power stathnrs and for the Goedehoop colHery to supply coal required for Amcoal's
Phase III export entitlement is forecast to amount to RI 853 tnitHon in December 1981
money values, of which AmcoaTs ravestmend would be R1 363 m-rlfton.

3. The annual report will -be posted to members on or about June 17 1982.

DIVIDEND NO. 118

Dividend Nth 118 of 95 emits per share (1980: 72 cents per share), being the final
dividend for the fifteen months ended March 31 1982 has been declared payable on July 16
1982 to members registered in the books of the company at the close of business on
June 11 1982. This dividend, together with the interim dividends Nos. 116 and 117 of
ig cents per share and 46 cents per share declared on May 12 1981 and November 10 1981,
respectively, makes a total of 166 cents per’ share (1980: 108 cents per share)

The transfer registers and registers of members will be closed from June 1J to 27
19S2 both days inclusive, and warrants win be posted from the Johannesburg and United
Kingdom offices of the transfer secretaries on or about July 15 19SL Registered
shareholders paid from *he United Kingdom will receive die United Kingdom currency
SSafent on fone 14 1982 of the rand value of their dividends, less appropriate taxes.
Any such shareholders may. however, elect to be paid in South Afncan currency provided
that "the request is received at the offices of the company’s Transfer Secretaries in
Johannesburg or Uie United Kingdom on or before June 11 1982. The effective rate of

non-resident shareholders' tax is 15 per cent- . . , . ,

The dividend is payable subject to conditions which can be inspected at the head
and London offices of the company and at the offices of the company’s Transfer Secretaries
in JoAimnasbors aW the United Kmgdom. By order of the board

'ANGLO AMERICAN CORPORATION OF SOUTH AFRICA LIMITED

Secretaries
per: A H. J. Millenaar
Divisional Secretary

Transfer Secretaries: . ,

Consolidated Share Registrars Limited

62 Marshall Street

Johannesburg 2001

(PO Box 61051 Marshalltown 2107)

and

Charter Consolidated PX-C.

PO Box 102, Qiarter House
Part Street, Ashford
Kent TN24 8EQ

May 19 13S2_ J. .

Registered Office:
. 44 Main Street

Johannesburg 2001

London Office:
40 Holbom Viaduct
London EC1P laJ

UNIT TRUSTS

rst\

RKPOBCHASES

1978 1V79 ' 1980 1981 ’82

Statues of Brunei
for Paddington
and Bristol

TWO STATUES of Isambard
Kingdom Brunei, the Victorian
engineer who built the Great
Western Railway and Padding-
ton and Bristol’s Temple Meads
stations will be unveiled on
May 26— one in London and
one at Bristol.

Both are bronze, larger than
life sculptures by Mr John
Doubleday, and were commis-
sioned by Bristol and West
Building Society. They have
been cast at ihe Art Bronze
Foundry in Fulham, London.

Mr Doubleday was also
} responsible for the statue of
I Charlie Chaplin in Leicester
Square, London.

The statue at Paddington of
a seated Brunei, will be on the
concourse area called the
“ lawn ” between the platforms
and the main entrance. It will
be unveiled by the Lord Mayor
of Westminster, Councillor
Thomas Whipham.

The Paddington celebrations
will include Victorian music by
the Royal Artillery' band.

The Bristol statue will stand
outside a newly-completed
extension to the Society’s head
office at Broadquay. It will face
the waterfront. •

BR reports
record
£7 2 m from
property

By William Cochrane
PROPERTY ACTIVITIES
made a record contribution or
£72m to British Railways last
year. But BR accepts that its
accelerated property sales
programme is easing present
cash flow problems at the
expense of sacrificing future
growth prospects.

Sir Robert Lawrence, chair-
man of British Rail Property
Board, which administers all
Bit's property affairs, said
yesterday in s review of 1981
that last year’s Income was a
£4m improvement on 1980.
The figure was achieved
mainly through net income of
£3 7.9m from lettings and net
proceeds of £38. 7 m from
sales.

The accelerated sales pro-
gramme is making a major
contribution to helping the
railway with Us cash-flow
problems, he said, but farther
sales on a similar scale can be
achieved only by sacrificing
the long term benefits of
rents/ growth from the
ownership of these assets ,

Sir Robert said that since
1977, the board bad doubled
its cash contribution to BR.
quadrupled its property sales
and increased its rental in-
come by 14 rimes. However,
over the same period it had
reduced the railway estate by
nearly a quarter. "We sold
some properties which in a
different climate might have
been retained for growth
potential.

“We have about three good
years ahead of us, including
this one. After that It is
going to he a diminishing
exercise,” he said.

The J easy” property sales.
Sir Robert noted, are the ones
which go most quickly.

However, he was “quite
confident*’ that BR’s property
sales would rise again this
year.

Datsun protests about‘distortion’
of Japanese car import figures

BY KENNETH GOODING. MOTOR INDUSTRY CORRESPONDENT

IE political maneuuvring whereas sales reached only
ithin the UK motor industry 53,500.

fore next week’s meeting with In a formal protest to the
e Japanese Automobile Manu- society. Datsun said that cars
cturers Association has shipped from Japan in April
arfced off a protest bv will not be available for sale in
itsun UK. the major th e UK until June, by which -
i porter of Japanese cars. time another 20.000 to 30,000

Datsun has proiested to the Japanese cars will have been
K Society of Motor Manu- registered— thus ^- in Stn| the

cturers and Traders that the shipment a ml sales ti^u.es
o>u mni’P inirt br.lsncp.

THE political maneuuvring
within the UK motor industry
before next week’s meeting with
the Japanese Automobile Manu-
facturers Association has
sparked off a protest by
Datsun UK, the major
importer of Japanese cars.

Datsun has proiested to the
UK Society of Motor Manu-
facturers and Traders that the
society has encouraged figures
to be published which give a
distorted picture of the current
position of ihe Japanese in the
British car market.

The row has blown up be-
cause some UK manufacturers
have said they are worried
about the build up of stocks of
Japanese cars in Britain.

They pointed out that car
shipments from Japan to the
UK totalled 90.000 in the
.lanuary-April period this year.

much more into b:.lance.

Datsun maintains that the
Japanese car importers’ stocks
were extremely low at the
beginning of 19S2 because
shipments were halted towards
the end of 1981.

** The situation of the
Japanese importers is certainly
worse than at this time last
year,” Datsun said yesterday.

The Japanese market share
was down from 11.37 per cent
to 9.71 per cent at the end of

Royal AutomobUe Club
raises membership fee

FtNANCtAL TIMES REPORTER

THE Royal Automobile Club,
which has launched a drive to
attract members, has held this
year's increase in its basic
membership fee to less than 3
per cent. The fee will rise by
5p to £17.50.

The club is also to follow its
rival, the Automobile Associ-
ation. in operating a breakdown
service lo allow members to
receive aid at home. The addi-
tional fee for tins will be £5.50
a year.

The basic fee will for the first
time proride help for drivers
stranded because their cars have
been damaged by vandals.

Mr Eric Charles, chief execu-
tive of RAC Motoring Services,
said yesterday: “ a driver whose
car is immobilised by vandals is
stranded just as much as one
whose car breaks down through
a mechanical fault.”

The club is including caravans
and trailers in its recovery
service at no extra cost.

It is to spend about £lm on
national advertising, in an
attempt to boost its 2m member-
ship closer to the 5.3m AA
membership figure.

• Motorists in some areas
could soon be confronted with
parking meters which take
plastic cards instead of lOp
pieces. One of the meters was
displayed yesterday at a Design
Council exhibition in London of
high technology development.

Negotiations are proceeding
for their use in a print scheme
in certain local authorities,
among them possibly West-
minster.

The meter works on a system
similar to British Telecom-’s
oardpbone telephones.

April and well within the
targeted 10 to 11 per cent for
the year.

The 13th meeting between
representatives of the UK and
Japanese industries is to take
place in Tokyo on May 26 and
27 and the main message from
the British will be that the fore-
cast of new car sales in 19S2
has been reduced recently from
1.52m to 1.55m down to 1.48m.

However, the society’s pre-
diction about light commercial
sales has been improved to
178.000 for the year agaiosr the
January forecast of 170,000 to
175.000.

The British understanding r>f
the Japanese voluntary
restraint is that this year (he
Japanese will keep both car and
light conunercial sales within
11 per cent of their respective
markets.

nasses
1 500,000
pyoor t milestone

THE 1,500,000th Bedford com-
mercial to be exported was
driven from the production line
•yesterday, at a . ceremony
matched by Mr Norman
Lamont. Industry Minister.

The ceremony emphasised
that General Motors is deter-
mined its UK subsidiary plays
a major role in its future com-
mercial vehicle programme.

In the past 10 years Bed-
ford's total export earnings
have topped £1.2bn. The truck
which emerged from the pro-
duction line at Dunstable. Bed-
fordshire. yesterday was one of
60 Bedford TM four-wheel-drive
vehicles on its way to Abu
Dbabi as part of a £2m deal.

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Financial Times Wednesday May 19 1992

UK NEWS - LABOUR

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Strike plea
to seamen
against
Tebbit Rill

By Brian Groom. Labour Staff

MR .mi SLATER, general sec-
retary of the Natinoal Union
ol Seamen, is pressng for sea-
men. transport workers and
miners to stage an all-out
strike to prevent Mr Norman
Teh hit's proposed employ-
ment law being implemented

The stoppage would begin
on the day the Bill became
law, or the day before “I
hate had a positive response
from some of my colleagues
on the TUC general council,**
Mr Slater said yesterday.

His plan goes beyond the
TUCs strategy. This em-
powers flie general council to
co-ordinate action In support
of a union, but does not
specify strike plans

Although some union
leaders have suggested the
possibility of a * national
strike,** the firmest proposal
has been the General and
Municipal Workers Union's
Idea of strikes across an in-
dustry If the law is used
against the onion.

Mr Slater made it clear he
was not talking about a
general strike. He did not
want groups such as nurses
and doctors to take part,
although sympathetic Indus-
trial groups might Join in.

“ If the seamen and the
miners and all transport
workers decide d. if we believe
what we say and if the move-
ment believe what we say.
then this law would collapse."
he told the NUS biannual
general meeting In Tenby,
South Wales

“ Unless we want to be
killed we should be saving on
the day the Bill becomes law
there will be no ships sailing,
there will be no transport,
there will be no coal dug.**

Later asked ]f he would be
prepared to see a strike
without a general council
majority for it. Mr Slater said
he would not “ betray" his
council colleagues. Some other
plan might emaege before the
time arrived.

But. he made it dear to
delegates, that he considered
it useless to try to educate
people on how to protect them-
selves against the law.

It i6 something of a turn-
around for the NUS to be in
the forefront of united mili-
tancy against the Tebbit BilL
The union was expelled from
the TUC for registering under
the 1971 Industrial Relations
Act to achieve an approved
closed shop.

CM Service unions may
resume group bargaining

BY JOHN LLOYD, LABOUR EDITOR

, CrVTL SERVICE union leaders
: expect the next round of pay
1 negotiations to fragment into
group bargaining, ending the
centralised approach of the past
two years.

They accept that this will
reflect the Government's pre-
ference for market forces to
prevail within these negotia-
tions, with some groups possess-
ing a scarcity value able to
bargain above a given cash
limit, while others fall below it

They also believe that there
will be no time to construct any
kind of comparability index—
which matches civil service pay
with equivalent private sector
jobs— in time for next year's
negotiations, which begin early
in 1983.

No progress on such a system
could be made until after the
inquiry into civil service pay
chaired by Sir John Megaw
reports in the s umm er.

Mr William Kendall, the
secretary general of the Council
of Civil Service Unions, in

Bournemouth for the annual
conference of the Institution of
Professional Civil Servants,
said yesterday. “ It is not
possible to have a new
negotiation system for 1983.
There will be a year of acute
difficulty."

Mr William McCall, general

secretary of the EPCS, said he
believed that the next year
would see bargaining on a
group - by group basis. Mr
McCall, whose conference
yesterday carried a motion
csiMng for immediate action to
resolve “ compressed and in-
verted differentials," is likely
to advance claims tor increases
for his worst affected groups
soon after Megaw reports.

It is possible, but unlikely,
that the unions could secure a
commitment from the Govern-
ment to allow claims to go
through arbitration. In the
longer term, the unions might
be prepared to accept arbitra-
tion coupled with “ parlia-
mentary override.”

The unions woul dseek to
have the arbitration's finding
go to either the Treasury Select
Committee or to the Privy
Council rather than — as would 1
have been the case this year —
to the Bouse of Commons.

The difficulty for the unions
is only partly due to the hiatus
caused by last year's industrial ;
action ami by the workings of
the Megaw inquiry.

Decisions by the conferences
of the Civil and Public Services
Association and the Inland
Revenue Staff Federation to
seek flat rate increases— bene-
fiting their largely low^aid
membership— are in contrast to
the percentage Increase policies
of the Society of Civil and
Public Servants -and the IPCS.

A possible compromise — to
incorporate a fixed-sum mini-
mum increase for all with a
percentage increase on top— was
effectively destroyed yesterday
when the IPCS conference
voted down a motion calling for
such a policy.

Miners promise ti
support health
workers over pay

BY IVO DAWN-AY, LABOUR STAFF

Firemen may press for action

BY PHILIP BASSETT, LABOUR CORRESPONDENT

FIREMEN’S representatives
will be asked to back a call for
a series of national one-day
strikes if disciplinary action is
taken against Fire Brigades
Union members who take part
in possible industrial action
from the end of this month.

The annual conference of the
FBU. which opens in Bridling-
ton today, will consider a 17-
point plan of industrial action
proposed by the FBU executive
over a dispute with another
union on staff representation.

The executive proposes that
industrial action should start
from Monday, May 31, if the
dispute with the non-TUC
National Association of Fire
Officers is not resolved in the

FEU’S favour.

The industrial action would
include:

• An “emergency call only"
routine by all duty crews.

• Working to rule over such
areas as fire engine manning
requirements, which could slow
down crews’ response to calls.

• Official reports, including
Home Office statistical material
should not be completed on
fires.

• Fire prevention officers
should carry out inspection of
premises only where there is a
legal requirement to do so.

• All training and staff other
than new recruits should be
halted.

• The drilling of part-time
retained fire fighters should be

restricted. ■ _

To reinforce this, the execu-
tive’s statement to the confer-
ence says that if any fire
authority docks pay from
members "as a result of par-
ticipating in industrial action
then the executive council is to
institute a series of national
one-day strikes.” . . .

The dispute between the FBU
and Nafo is over representing
Britain’s 5,000 tire officers.

The FBU claims to represent
more than half the officers in
post But its ’ proposal to
increase its representation on
the employees’ side of the
officers’ negotiating body, giving
an equal seven seats with Nafo
lias been rejected.

Aslef chief predicts rostering rejection

THE TRAIN drivers’ union
annual conference is certain to
reject the McCarthy tribunal
findings in favour of flexible
rostering according to Mr
Derrick Fullick, union president,
writes David Goodhart
In a hard-line speech opening
the Associated Society of Ix#-o-
motive Engineers and Firemen’s
conference, Mr Fullick also

threatened civil disobedience in
the fojht ag ains tt he new em-
ployment legislation.

There was no hint of compro-
mise with the Government or
the British Rail Board in his
address to the 46 delegates and
Mr Fullick said any attempt to
impose flexible rostering would
almost definitely cause further
strike action.

Despite the 13 safeguards pro-
posed by McCarthy — including
a local union veto — Aslef
would not relinquish the eight-
hour day. The tribunal findings
were based on Government
policy. "Any executive mem-
ber who even thought of accept-
ing the findings would very soon
find himself back - driving
trains,’’ he said.

MR ’ ARTHUR SCARGILL.
president of the National ‘Union
of Mineworkers, . . yesterday
pledged active support for the
National Union of Public
Employees and .other National
Health Service unions on the
eve of their 24-hour pay strike

After talks with Mr Rodney
Bickerstaff, Nupe general secre-
tary designate, Mr ScargiU said
that he would instruct his
officers to enter talks at . local
level with Nupe, officials on a.
programme of action and
assistance.

Mr. Moss Evans, general sec-
retary of the Transport and
General Workers Union, also
promised to. throw. his weight
behind the campaign .. ... ’ : •, .

TGWU members would- be
instructed not to cross picket
lines and to take part in demon-
strations backing the National
Health Service unions, he said. :

The growing support for NHS

Vauxhall plant
to consider
jobs cut plan

By Kenneth Gooding, ~

Motor Industry. Correspondent

THERE IS to be a mass meet-
ing of production workers sit
Vauxhall’s Ellesmere Port
plant on Merseyside today to .
consider the company’s latest
proposals, which include a
further 300 ; redundancies;.

Vauxhall, a General Motors
subsidiary, told 'the unions It
wants to resume fn&dme
working at the plant, which
has been on a four-day week
for 18 months. •

This could be achieved by
another 300 redundancies at
Ellesmere Port .where 2.900 .
production jobs have . gone,
since the beginning of 1981, .
reducing the hourly-paid -
workforce by 38 per cent to
4*700.

Vauxhall would also step
up production— by mi un-
specified amount — of the
Chevette and Astra ‘ cars '
made there.

The proposed plan would
be implemented by the •
summer break at the end of -
July. It also envisages that
the current "loan” of 170
Ellesmere Port employees to
VaoxhaU’s Luton plant would
continue.

workers follows an appeal by
Nupe to Mr Leu Murray, the
TUC general’ secretary, request-
ing a mated front of “morai or '
actual _ .support ' all -

affiliated dnions. -.*• .

* South .--- Wales • -miners ■ -are
balloting on * oneway stoppage
in ? sympathy;- with' the NEK
workers? case for .an -improve-
ment in the .Government’s 4. to
- 6.4 percent offer. • _

MrNormanFowierlihe Social
Services ‘ Secretary, yesterday
. issued .-a fresh appeal-, to NHS
staff ' .not . to take ^industrial

- action. Mr Fowler said that the
Government was now spending ~

. £12bn a year in England on- the
NHS— a 0 per cent Teal increase
in funding since 1979.

- Last-minute preparations,- 1 for

. today’s 24-hom: strike continued '
last night ‘with NHS unions, p re- .
~ dieting massive backing tor the •
action. ■

Barclays staff
may vote on
Saturday trade

By Our Labour Stiff
THE EXECUTIVE ’ of "■■the
Barclays Group Staff ‘ Union,
which represents 40,000 Bar- *
days staff, has' confirmed its
opposition to the bank’s ;plans
to open 400 branches on Satur-
day mornings. But it said last
night it - would consult its
members and would still be i
open to discussion with the
bank., . j.

The union will now have to
decide whether to ballot all
members, or just consult
through regional committees, on
what action: to take...

Mr Eddie Gale, general secre-
tary of BGSU. also said that the
payment the bank has suggested
tor Saturday work was totally
inadequate. The . pay levels .are
£18 for cashiers,' £24 for per-
sonal customer services staff,
and £30 supervisory staff.

Barclays ^says it wiE have no
difficulty in finding volunteers.

The executive 'of the rival
TUC-affiliated Banking. :. Insur-
ance and Finance Union, which
represents another Iff, 000 Bar-
clays staff, will , meet oh May
26 but an informal preliminary
meetihg has revealed wide dif-
ferences between Barclays
management and BIFU .leaders.
Both unions were angry at not
[ being .consulted before a deci-
sion was made public.' . • - 1 "i .

■ffittMWTT-:

How we helped turn
Portugal petrochemical shortage
into a surplus.

If. ..V .

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Petrochemicals. Whatyou don’t make, you buy.
And Portuguese industry was buying large
quantities from foreign suppliers; particularly
aromatics and solvents, commodities im-
portant to many Portuguese
companies. |HHHte|fc*

Yet Portugal had one of

Europe’s large refineries on S

stream. Couldn’t it be expanded
by cutting into the stream to
extract and recover some of
these products? Badger limited, H- • \; K| l||ii
a Raytheon company, said yes,, m
and undertook the design, en-
gineering, procurement, and
construction of this project
Now, in addition to its nor-
mal output of gasoline and oil, the upgraded
refinery is generating more than 300,000
metric tons per year of important petrochem-
icals; enough to satisfy Portuguese industry’s
own needs, and excess for exports, thus

uy. helping the country’s -balance of payments.

This is typical of how Badger applies a
r broad range of skills to petroleum, petrochemi-

cal, and chemical projects around the world

■*) In Europe alone, Badger is cur-
Aj rently at work on major facilities

a-. ■;

v ■■

ii

A hi t h e U.K.,' West Germany, and .

■' •• Netherlands. And, a major ■

' . ' v ¥\A expansionof a New Zealand V .

[ ' h refinery is now being designed

- v .v : i and constructed in a joint venture
with Chiyoda of Japan by_
Badgers office inThe Hague.

^ -Badger. Part of Raytheon...
i a billion company iri elec- ^

tronics, aviation, appliances, A -
energy, construction* and publish-,
ing. For our latest financial reports, please
write Raytheon Europe* 52, Route des Acacias,
1227 Geneva, Switzerland, or worldwide head-
quarters, Raytheon Company, 141 Spring Street.
!Lexington,lvlassachusetts, USA 02173. -

RAYTHEON

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Badger B.V, Booses Beatnxlaan 9, 2595 Aklhe Hague; United Kingdom: Badger Limiied, Turriff Building, Great West Road. Brentford. Middlesex
TWB9JA.

RAYTHEON C0MRVNIE5 IN EUROPE; Electronics: Conor Electronics Limited, Harlow, Esse*, England • Data Logic Limited, London England *
Raytheon-CopenhageoJienmaik" Raytheon HalNeiter Gjn.b.H, Mndeh. West Gammy- Raytheon International Data Systems, Amsterdam.Nelhcrlands:
FronkTurt, West Germany* Raytheon Marine limited, London, England • TAG Hnlblcitcr Gjn_b.R, BoeWir^en, Vfcst Genrany « TAG Semiconductors
Limited, Zurich, Switzerland ■ Wim and Cable: Electrical installations Limited. London, England • Le Rl Dynamo. S. Am Meyrieu, France • Greengale
CabiesUmited, Manchester; England* Klasing Gjn.bJL &C3 m Ingrfsladt,Vfet Germany • Lacroix & Kress GjtLbJL St Ok, ffianachc, West Germany •
Sterling Cable Company limited, Akfamastim. Berkshire, England. ‘

RAYIHEWJ OVERSEAS UMTUB, EUROPEAN OFFICES: Bona, Brussels, London, Madrid, Paris.

BMW are the first to acknowledge that
most large luxury saloons are exceptional.

Differences, where they exist, are far lep
about engineering standards than about

eng ?!ndi fe§MW%priorty tocreatea vehicle
whose sumptuous furnishings don t isolate
you from the actual sensation of driving.

No? in the sheer pursuit of performance

do BMW rely on an oversized engine that
drinks petrol faster than the North Sea can

^NoAtBMW, luxury is not an excuse for

conspicuous consumption.

Of course, as the BMW 7351 Special
Equipment amply demonstrates, you should
expect ail the room and comfort money

can buy. . • ' .

Of course, you should have the option of
seats sewn from the finest leather hides.

Of course, you should be transported
swiftly and serenely without engine or wind
noise to disturb your calm reflections.

But a luxury car shouldn't only be
enjoyable to sit irv

Itshould be enjoyable to drive.

And thatmeans more than havinga road
version of BMWs racing 3.5 litre engine to
spirityou from 0 to 60mph in73 seconds
(Source: Motor). ;

It also means having a power steering
system that lets you feel the road while
you’re driving. Yet gives you all the
assistance you need when you're parking.

It means having a computer-controlled
braking system that in an emergency lets
you steer and brake at the same time

It even means having instruments that
give you more information about your

progress than any other luxury car can
giveyou.

What do you have to pay for such
excellence? As little as £13,765 for the
BMW 728i Or as much as £22,358 for the
735i Special Equipment

But since a leading motor magazine this
year placed a BMW 7 Series ahead of a car
costing £52, OOQ it could be
excused one dull virtue iff B-Ji

Value for money OB

THE

•7T77T

jxury is nui <si i j

TES, INCLUSIVE DELIVERY
UV ACCESSORIES

FOR TAX-FREE SALES: 56 PARK LAKE, LONDON WL RING 01-629 9277.

Ill

EDITED BY ALAN CANE

V !

India programmes for the future

BY JOHN ELLIOTT, INDUSTRIAL EDITOR

'INDIA Is beginning to make a
'mark in various parts of the
yworld as a potentially major
^exporter of computer software.
Its total business has expanded
•in the past few years, growing
according to one company esti-
mate from virtually nothing, in
2P74 to £6m-£Sm last year.

While a country like the UK
•is said to be short of 20.000 to
40,000 software experts, India
has a ready supply of person-
nel with the aptitude and some
.of the skills to do software writ-
ing. It can cut European labour
costs by up to 70 per cent.

Competition

.. As a result, the UK and other
countries which regard them-
selves as major sources of soft-
ware could face a significant
■new competitor, particularly if
India's own electronics industry
grows sufficiently to give its
software houses a springboard
from which to expand overseas.

: Until now two companies in
the country's giant Tata group
I— Tata Consultancy Services
and Tata Burroughs — have
accounted for as much as SO
per cent of India's output.

- But there are also another
20 companies involved, and
other large industrial groups
are expected to move in.

• Among smaller businesses
there is Sysiime Computer
Systems.' a subsidiary of Sys-
time of the UK. which is
-partially owned by Lite National
Enterprise Board.

At the other end of the scale,
the Government-owned Com-
puter Maintenance Corporation
fwhose former managing
director Dr P. P. Gupta is now
permanent secretary of the
Department of Electronics) is
taking an interest.

International Computers
Indian Manufacture, an associ-
ate company of ICL of the UK,,
is also considering diversifying
from its traditional erynputer

manufacturing operation and
sees considerable initial poten-
tial » in writing programs
designed elsewhere.

The other companies include
Datamatics, Computronics, Com-
struct Software and Interna-
tional Data. Some of them are
represented by the Indian
Engineering Export Promotion
Council which is visiting the UK
and other European countries
□ext week on a sales drive.

The attraction for such com-
panies is that software writing
is not capital intensive and has
a comparatively high potential
ratio of exports to imports, so
making it relatively easy to
escape many of the bureaucratic,
controls that impede industrial
development in India.

Indians show considerable
. aptitude for software writing
and mathematically astute
graduates in science and en-
-gineering are readily available.

" You advertise for 10 people
and you can pick from 1,000
graduates, 800 of them in en-
gineering ” says Mr Ramesh K.
Verma, head of Systime India.
“ So you get the cream in India,
unlike, say Singapore, where
most programmers are not
graduates and do not have the
same problem-solving aptitude **

Because of cheap labour rates
a graduate programmer with
three years' experience can be
paid less than £2,000 a year
compared with salaries con-
siderably in excess of £7,000-
£8,000 in the UK. making a
saving of about 70 per cent
But increased communication
problems and costs reduce the
advantages.

Systime reckons that the net
saving is a boat 30 per cent, a
figure that should grow as
expertise increases.

Lack of experience is the
major drawback at present.
Basic program analysis
usually has to be done else-
where because the Indians have
little experience on advanced
hardware, which is installed in

few companies at present
Most of India’s technology is
five or more years behind the
UK. It is held back by the
country’s traditional policy of
self-sufficiency which the
Department of Electronics uses
rigorously to restrict the flow
of the imports of goods and

Mr Ramesh K. Verma, head of
Systime’s subsidiary in
Bombay

capital, even thought 'these are
essential for tbe development of
an industry like electronics.

“India has a huge credibility
gap because of lack of experi-
ence on advanced systems which
means that few people can write
good data base programs,”
says one international computer
executive.

But export and import restric-
tions are being relaxed a little
along with other controls and a
new overall policy on electronics
being thrashed out by the
Government may speed devel op-
ments. Some senior Indian
civil servants recognise that
their policies have made the
country faB too far behind in
electronics.

Most of the software companies
are located in Bombay and
several have set up in the
Government's customs-free Santa
Cruz Electronics Export Pro-
cessing Zone fSEEPZ) where
most of India’s restrictions on
foreign investment and imports
do not apply.

The zone was created in 1974
and, apart from software writing,
has been something of a dis-
appointment because it has not
managed to attract any signifi-
cant high technologies. Multi-
national companies have tended
to prefer customs free zones in
other countries tike Singapore.
Taiwan and Ceylon, ,and have
generally wily invested in
SEEPZ to tap some particular
Indian source — films for video
cassettes for example.

Tata Consultancy Services
was set up in 1968 and was the
Burroughs distributor before
the joint Tata Burroughs com-
pany was set up in 1978. It has
about 500 . software employees,
mainly working for Indian cus-
tomers.

Tata Burroughs has about 250
professional staff. Some 55 to
60 per cent of its businesses is
software writing. Of the re-
mainder, 35 per cent is manufac-
turing a Burroughs dot matrix
printer which is only operating
at half capacity and is under
review.

The final 5 per cent is the
import of Burrongns machines
into India — a graphic illustra-
tion of the slow rate of Indian
computer purchasing.

Systime was.set.up when Dr
Verma, who was .working for
the company in the UK. wanted
to return to India some three
yews ago. He believed that UK
software writing quality was
deteriorating because of a
shortage of qualified. people and
saw the Indian potential.

The company is 95 per cent
owned by Systime and 5 per
cent by Dr. Verma , (it escapes
foreign investment restrictions
by operating in SEEPZ}. It
employs 40 people — about 15
per cent of the group’s total
programming staff.

Last year it had a turnover of
£ 200 , 000 . all exports to its
parent company. It hopes soon
to - laud its first two export
orders for outside customers
and Dr Verma wants to expand
this to 50 per cent of its
business in the. next three years.

. v« J r"

for building products, - ;
heat exchange! fluid power,
fipecialrpurpose^yalyes,
general engineering, .
refined and wrought metals
, -

Btoiwigham,

Initial moves

THIS latest item - of farm
equipment developed by SKE
of Market Drayton, Shropshire,
has been designed for working
down seed beds from, ploughed
land and can also .be used for
working direct on to stubble in
the Autumn.

The Crumbier will,. it is claimed
produce a seed bed In one pass
in most soils for Spring culti-
vation. It consists of a spiked
helical front roller which-

drives the rear roller :at - two
and a half times the speed. Two
sets of tines are .adjustable for
depth of work. . V' 1 ’ ■'

Re<?o in-mended operating speed
is between four and' seven . mph.
At present tbe Crumbier- is
available in only a. three metre
working width but the company
. plans to introduce Mother sizes.
Price is £1,895 with alternative
tines at £264 per set. Mure on
0630 3501.- • - '

air drag

IT. HAS been known . by : aero?
nautical : engineers for "some
time that if the turbulence thart
inevitably occurs on' a normal
aircraft wing could be reduced,
then drag would he' reduced
also, cutting the aircraft’s fuel
consumption by a surprising
amount. - -

Growth

Its software business grew 80
per cent annually from 1978 to
a total of £2.6m in 1981. Some
75 per cent pf this is for Bur-
roughs international activities.

Burroughs often specifies soft-
ware writing in India as part of
its bid for hardware contracts.
Clients include The World Bank,
Ford Motor, -and Diners Club.

ICIM is considering making
its first moves into software.
Unlike some companies which
concentrate on “body shopping"
{sending Indians to write soft-
ware on contract overseas)
ICIM wants to obtain work
abroad to be carried out in
India.

As a preliminary step, it bas
written test programs for
circuit boards it manufactures
at its factory in Pooua to prove
its capability both to itself and
to ICL, which effectively con-
trols its policies from London.

Clearly, India has a consider-
able way to go before it can
offer full software programming
services. But its pool of skills
and its cheap labour have en-
abled it to compete successfully
for the past three years or so in
the U.S., Europe and the
Middle East.

Compucorp has LAN

One method' of reducing the
drag is to.perforate the wing'
with- millions . of ' very small- '
holes— robviously a very expen-i
sive - process if mechanical

methods are used.

Now, it could become a major
competitor at a time when soft-
ware labour costs are account-
ing for a growing proportion of
computer prices.

IN COMMON with many other
microprocessor and word pro-
cessor companies, Compucorp,
the Santa Monica based cor-
poration, has come to market
with its own version of the local
area network or. LAN.

Called Omeganet, the system
is a terminated bus with no
branches, employing coaxial
cable that can. easily be installed
in cavity walls and ducts. *

Connections to the cable are
by means of a junction box and
drop cable attacbed to the work-
station by -means -of a simple
“T‘ connector. Speed pf the net-
work is up to 10 Megabits/
second.

Each of these networks cart
haw from two to 16 work-

stations, one or all of which

might contain mass .storage
while the others arc. basically
screens and keyboards that can
access that storage. - ••••.;

This baseband LAN, however,
can be connected to a .number
of others to provide a maximum
of 255 workstations. .

Future : expansion ' plans
-involve the provision . of •‘gate-
ways" both to other proprietary
local networks and to wide-area
PTT networks.

Any station ; is . upgradable ;
with disc to act as a file proces-
sor and. can also become a eon- !
t roller to download software to <
a newly introduced workstation, j
type 745. which has nor local ;
storage and has been designed 1
specifically .. for > networking,
operations. More on 01-952 7860..

- /At McDpnnel Douglas, Long
Beach. California, engineers are
experimenting with a thin" sheet
of -titanium as. the, wing surface,
using an electron b*am to per?'
forate the metal, with holes of-
: 0.0025. inch diameter spaced'
a partly a mere 0.025 uiriuThe
.result is 1,600 holes per square;
inch.' '

Wmg design ,

Sorting

Centre for

packages

INTRODUCED BY Snvex Mar-
shall from Italy is a high speed
conveyor-based sorting system
that can deal with up to 10,000
packages per hour and is aimed
at post offices and direct mail
warehouses — or wherever items
that vary in weight, volume and
dimensions are involved.

Items are pushed- at -90- deg
off. the conveyor at the required
discharge points by means of
instructions from a micropro-
cessor. itself fed with data from
laser scanner, voice encoder or
keyboard.

One of the three -systems is
used at the feed-in points,
where a check Is made on the
destination information appear-
ing in any one of number of
forms on the items to he sorted.

For high throughput installa-
tions, the items can "be oriented
automatically for laser scan-
ning, although . below certain
capacity levels this can also be
done manually.

. At a typical installation in

practical
GAD work

A CENTRE to provide practical
experience of. computer aided
design -and manufacture tCAD
and CAM) for engineering firms
in the north of England - Tfos
been established at the head-
quarters . of- the British Ship
Research ■' Association.- in
WallsemL . ... |

The- Douglas wing; design,
uses suction pumps to draw-a <
small fraction, of the h tmndary-^
layer air ^through the holes 4 into. I
ducting within the- wing.. This' !
prevents the smooth. - laminar ’
-flow from becoming turbulent;?'

Parallel work is aimed -at \
keeping' the wing clean, since .
even small insect marks. higher
than ,0.004 inch can destroy - the
flow..,' ■-■■...■>■; ■

The problem has been' over-
come by means of a retractable
shield that is deployed: in front :
of the Wing- during- take-off.
climb, descent and landing. The
shield, also acts, as a high lift
device. In .case some contami-
nant "should, get past the shield,
a ' system 7 has been developed
that sprays a 'liquid film 'over
the wing to prevent adhesion of
Foreign, matter. . -

sptrenc

Bonding

Sponsored by the Dol,. the.!
centre will offer. ' a complete i
introduction" to the subject
without commitment, by users.
Half day . practical demonstra-
tions are. given by arrangement
while in-depth courses are pro-
vided for design managers and
production executives.

Designers and draughtsmen
can have “hands-on" experi-
ence and the equipment is made
available at special hourly rates
to allow those interested to gain
experience and make an initial
assessment. ■ More . oh U623
625242. . - . :

There is other new_- tech-
nology ./in the wing. . , ; Por
example, the titanium -.ip- not
rivetted : i© tbe met? I structure;
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cent.

f . ,

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llW'

n ;Jlnand^l Times Wednesday May" 19 ’ 1982 : ’

" ' " " ENERGY REVIEW

FLAGS signals a small boost for

Sea gas-gathering plans

NORTH WEST EUROPE'S
J- chances of using North Sea gas
^ to give its 'flagging petro-
"j chemical industry a much
£ needed shot cn the arm; . have
f: just received a small boost.

Shell and' Esso have finally
- started commissioning their
1 £lbn Brent field gas gathering'
\ pipeline. And some of the gas
coming through the line will .
“ eventually, be used as raw
material it. the 500,000 tonnes
> a year petrochemicals plant now
*.» being built at Mossmorran in
OFife.

But the completion of the
v Brent FLAGS hue— Far North
liquids and " Associated Gas
System — marks only a . small
: * step forward when set against
j* the grandiose schemes that were
■:* once envisaged. On both sides
” of tiie North Sea there were
*i hopes of using gas on a massive
’i scale to make petrochemicals,
i Today some of those plans have
£ been permanently shelved. And
•s those that have survived, albeit
F|-in a modified form, are beset
|| with difficulties.

It is now eight months since
the UK’s proposals for a £2.7bn
if offshore gas gathering system

5 were abandoned because of
insoluble problems over finance.
Had it^one ahead, -it could have
brought ethane gas feedstock to
existing petrochemical plants. at
Grangemouth in Scotland and
at Wilton in North East Eng-

j| land; some of the gas could
jjg eventually have been used at
gibe Mossmoran plant that is

6 now going 19; and the scheme
j might even have justified the
jfbuilding of a second new
^ chemicals complex at Nlgg Bay'
§on the Cromarty Firth.

But the collapse of the
^ambitious gas gathering project
a did not end all prospect of the
SsTTK petrochemical industry
I? switching from oil based raw
K materials to gas feedstocks. Not
f? only was the Mossmoran scheme
& still going ahead but BP
:<■ Chemicals announced that it
-. still wanted to modify its
' Grangemouth plant so that it
: could run. at least partly on gas
» feedstock.

BY SUE CAMERON, CHEMICALS CORRESPONDENT

chemical products as the oll-
bjased raw material. BP Chemi-
cals therefore wants to -convert
-only part of the Grangemouth
plant to ethane — and it believes
there wilt be enough ethane
■coming through the FLAGS line
to supply its needs at Grange-
month as well as- those of Moss-
morran.

But the BP scheme wrU only
be viable if the company can
obtain ethane at relatively low
cost. And the chances of its
being able to do so are slim.
...BP has little ethane of its
own and it would therefore have
to buy in supplies from Shell
and Esso— -its competitors. Shell
and Esso are certain to want to
cbarge BP more than -their own
in-house transfer price. And BP
would suffer a double penalty
because a higher price would
also mean a higher tax bill.

The tax deal on in-house
ethane transfer prices will run
for five-year periods. At the
end of five years, the Govern-
ment ' will have the right to
revise the ethane price it will
accept for tax purposes — notably
if it believes the going rate for
ethane on the open market is
higher.

This means that Shell and
Esso have a double incentive
Tor deciding not to sell ethane
to BP. If they are the only 'com-

h-

Deep trench

Meanwhile Norway was push-
u tag ahead with plans -to build
-. a gas gathering system of her-
i_ own — despite all the technical
! difficulties of putting pipelines
» across the deep trench in the
[ seabed that, runs round the
'..Norwe^ah coast And one of
p.'the thongs "the Norwegians
;i wanted to do was bring ashore
£ gas to feed their petrochemicals
complex at Bamhle.

*- But bow both the Grange-'
mouth and the Baavhie schemes
appear to be running into
trouble. And ta both cases the
root cause of the problem is
;’the question mark that hangs
••• over the price to be charged
j for gas feedstock.

If was the failure to agree on
\ ethane gas prices that was one
of the crucial factors leading
\ , to ,the abandoning of the UK's
original gas gathering scheme.

. The root of the problem is
; that there is no commonly
agreed market rate for ethane
— either in Norway or the UK.
i' Ethane, unlike other- gas
: liquids such as propane and
■ butane, is not easily transport-
• able except by pipeline and
therefore it is not internation-
ally traded. And in contrast to
the ILS.. where ethane is
widely used for making
ethylene, the so-called building
block of the petrochemical in-
dustry, nearly a-H Western
Europe’s chemical producers
still rely heavily on oil-based
feedstocks.

The alternative to using
ethane for making petro-
chemicals is to add it to the
natural methane gas that pro-
vide heat and power in homes,
offices and factories.

But this alternative use does
not ‘ provide an adequate
reference price for ethane as a
petrochemical feedstock.- Chemi-
cal companies argue fiercely
that it should be cheaper than
methane when it is being used
to make petrochemicals. They
claim dt is- not worthwhile to
use k as a feedstock if it is
as expensive as methane. .

The net result is that nego-
tiations over 'ethane prices fre-
quent^ become deadlocked.
And this is what now appears to
have happened do. Norway.

The Norwegian Government
has an option to take out the
natural- gas liquids — propane,-
. butane and ethane-— that will
come from the Statfjord field
through the new NJKr 12.75bn
offshore .pipeline ..now being

Graham Laver

built. The Government’s option
runs out on July 1 this year.

Three companies — Norsk
Hydro; Saga Petroleum " and
Dyno Industries — have' been
negotiating to buy the gas
liquids on behalf of the Govern-
ment. In February this year, a
pricing formula for propane and
butane was successfully agreed.
But discussions on a pricing
fomula for ethane broke down.

Norsk Hydro and Saga jointly
own a petrochemicals complex
at B amble and they are keen to
use ethane coining from the new
gas gathering -system as feed-
stock there. The idea is that
once the ethane has been landed
at Karsto. it should be stored
and then shipped.to BambJe. _ .

' . But the Statfjord consortium’s
negotiators insisted' that ethane
' from the: field should be priced
at least as high as its methane
"natural ‘gas. Saga, Hydro and
Dyno say such a price would
make the ethane feedstock too
expensive to be worthwhile. ]

The Norwegian Government
itself has insisted all along that
the gas liquids’ prices should be
market related. But this begs
the whole question of ethane
prices.

The Issue of the ethane price
has now been referred back to
the Norwegian Government
Some industry experts ; believe
that Hydro, Saga and Dyno are
hoping the Government will
itself impose a; price — and that
it will . be comparatively low.
Whether the Government will
act to., break the. deadlock
remains, to he 'seen.

Meanwhile- in dbe UK the
lack of an. established market
price 'for . ethane is being felt
equally strongly. But the chief
difficulty m Britain concerns
tax. ...

The petrochemicals plant at
MoBsmoraraa is being built by
Esso Chemical although it is
being jointly financed - by Esso
and Shell, the two partners in
the Brent field which will
supply .the ethane . feedstock.
What the two groups have done
is to decide on an in-house
transfer price for their ethane.
Arid last year Esso Chemical,
after threat erring to abandon
the £500m petrodaenucals pro-
ject,' managed to persuade the
Government to accept the trans-
fer price, for. purposes of charg-
ing Petroleum Revenue Tax.

None of the parties concerned
is prepared to say what the
Shell /Esso transfer price — and
therefore the tax reference
price— for ethane is. But there
is same speculation that, it
could be jbs tow as I2p a, therm
—far less (than, the current
going rate for North Sea
methane gas which is in . the
region of 20p a therm.

Some industry experts believe
Shell and Esso could be saving
themselves os much as, £20m a
year in costs as a result of the
tax deal they have squeezed but
of the Government.

Lease of life

But the agreement on tax has
raised difficulties for BP
Chemicals with its hopes of con-
verting its Grangemouth plant
to take ethane gas feedstock^-
and the difficulties could prove
insuperable. BP Chemicals’
ethylene plant at Grangemouth
is an oJd one and it currently
uses the oil-based naphtha as a
raw material. The company
believes the plant could be
given a new lease of life if part
of it were converted to take
ethane as a raw material—
particularly at a time when
Western Europe is suffering
from massive overcapacity in
ethylene.

Although ethane is a more
efficient feedstock than naphtha
for -making ethylene, it does not
provide the same Tange of

panics using the gas to make
petrochemicals on any scale in
the UK. then they can argue
that their in-bouse transfer
price is in effect the market
price. The Inland Revenue
would then have jto reason, to
increase the tax reference
price at the end of the first
five-year period.

And Shell and Esso appear
to have an alternative pur-
chaser for any surplus ethane
they may have — the British Gas
Corporation. Although there is
a limit on the amount of
ethane that can be mixed with
methane to make specification
gas, industry experts believe
British Gas will easily , be able
to use any excess ethane that
Shell and Esso do not need at
Mossmorran.

The result is likely to be that
BP Chemicals will be forced to
give up its plans for the con-
version of Grangemouth. And
if it does abandon them, it will
come under increasing market
pressure to shut the Grange-
mouth ethylene plant
altogether. At a time of over-'
capacity in ethylene through-
out Europe, product from the
Grangemouth unit would be
unable to compete with that
coming from newer, more
efficient plants — notably that
at Mossmorran.

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May 10, 1982

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Financial Ximes Wednestey May- 19 2982

Ult

iVTrfSi

16

FmactiaiTta^

UK NEWS - PARLIAMENT and POLITICS

Falklands decision this week, Thatcher says

BY JOHN HUNT, PARUAKCNTARY CORKESPONDBIT

BRITAIN is facing a critical
week which will decide whether
a peaceful settlement of the
Falklands dispute is possible,
the Prime JHuisjer told the
Commons yesterday.

Mrs Thatcher accused the
Argentine junta of “trying to
spin oat negotiations ” and
emphasised that Britain could
noL go <m accepting such
prevarication

So far no military option bad
been closed or . held up by
negotiations — nor would such
options be delayed an tire da*«
ahead.

For over sis weeks the
Government had been trying to
achieve a negotiated settle-
ment. If that was not possible
then she believed Conservative
MPs and most members of other
parties in the Commons “would
not flinch from a settlement by
force.”

The Prime Minister an-
otrnced that the House will
have another debate on the
Falklands tomorrow— the sixth
debate on the subject since the
c intis started nearly seven
weeks ago.

There were shouts of dis-
agreement from Conservative
MPs when Mr Michael Foot,
Leader of the Opposition, asked
for an undertaking that the
House would be able to assess
the chances of a negotiated set-
taement before there was any
major escalation in the conflict.

He said there were a number
of important questions which
had to be clarified in the

House. There had, for instance,
been the questions from Mr
Edward Heath, former Conser-
vative MP, about the Peruvian
terms for a settlement There
was also the question of how far
the Argentine government may
have moved towards acceptance
of two of the requirements laid
down by Britain.

Mrs Thatcher replied: “No
military action can be held up
in any way. To do so would be
to give notice to the dictator
who is our enemy.**

Mr Foot was constitutionally
wrong and wrong in practical
terms, she said.

Any military action or option
could not and must not be
delayed by people who were
extending negotiations, she said.
To consult MPs in the Hopse
about when Britain intended to
take action would give notice to
the invaders, “and that would
be stupid as well as totally
unjost to the people who we
intend to fight for.”

During Question Time Mrs
Thatcher faced hostile inter-
ventions by some Labour MPs
who accused her of ruling out a
diplomatic settlement of the
crisis when she spoke to the
Scottish Conservative Confer-
ence at the end of last week.
But Conservative back benchers
gave her their wholehearted
support

She said Sir Anthony Parsons.
Britain’s Ambassador to the
United Nations, had again met
Sr Perez de Cuellar, the Secre-
tary General, and put more

proposals to him to be handed
over to the Argentines. Britain
expected a reply very shortly,
within a matter of a day or so.

Negotiations were continuing
and the Government was doing
all it could to reach a peaceful
settlement, although there were
principles on which it could not
compromise.

u There remain substantial
difficulties,” Mrs Thatcher
warned. “I believe that we
shall know within the next day
or two whether an agreement is
attainable.

“ We cannot have endless
Argentine prevarication."

Mrs Thatcher assured MPs
that Britain’s determination that
all Argentine forces should be
withdrawn from the islands
remained absolute.

“We have throughout made
clear that we will take whatever
steps are necessary to bring this
about We are meanwhile in-
creasing the military pressures
on the Argentine government”

The Argentines, she said, had
shown their intransigence by
flouting every part of the UN
mandatory resolution, and had
sent extra men and equipment
to the islands.

Mr Robert Atldvs (Con
Preston North) criticised Mr
Tony Benn (Lab Bristol South
East) for taking part in a
march in which, he said, there
was a banner calling for victory
far Argentina.

Mr Atkins said that Mr Benn
and Dame Judith Hart chair-

man of the Labour Party, who
has called for tiie return of the

task force, were guilty of

political opportunism because
they were members of the
Labour government which sup-
plied ships and aircraft to

Argentina. ,

The Prime 'Minister told him
she believed the attitude taken
by Mr Benn . and Dame Judith
was out of step with their own
constituents and their own

party.

Mr John Peyton (Con Yeovil)
protested that a further debate
in the House would only allow
Mr Foot “ to farther slide away
from resolution into a morasse
of vacillation.”

This remark provoked cries of
“cheap, cheap *• from the
Labour benches.

Mr John Maxton (Lab
Cathcart) said that now the
Prime Minister was away from
the ** disastrously jingoistic ”
atmosphere of the Scottish Con-
servative Conference she should
reconsider her attitude that
“war was more thrilling and
exciting than the welfare of her
people.”

Mrs Thatcher strongly denied
any such attitude.

Mr Robert Litherla. nd (Lab
Manchester Central) said it was
time to put pressure on the
banks and financial institutions,
to play their part in the
sanctions against Argentina “or
is it far more convenient for
loss of life than loss of profits?”

Mrs Thatcher condemned his

SDP faces
repeat of
split on
Tebbit Bill

leadership contest

By HI nor Goodman

BY EUNOft GOODMAN, POLITICAL CORB£SPONDENT

Mrs Thatcher

remarks and said that
Argentine assets in Britain had
been frozen and the banks were
playing their part

There was laughter when Mr
James Craigen (Lab Mary hill)
suggested that as she was a
determined woman the Prime
Minister ought to have a face
to face meeting with General
Galtieri, the Argentine leader.

This brought cries of “ serve
him right ” from Labour
back benchers.

But Mrs Thatcher rejected
the idea and declared: “I am
a merciful lady."

No precedent for EEC farm price vote, PM warns

FINANCIAL TIMES REPORTER.

THE Prime Minister yesterday
issued a stern warning to other
EEC countries that moves to
force through the new Com-
munity farm prices against
Britain's will were “ quite with-
out precedent " and would raise
** very serious issues.”

Her tough line came as
Agriculture Minister Mr Peter
Walker, in Brussels, accused
Common Market countries of
“steamrollering” the 10.5 per

cent package through, and an
EEC official spoke of the “law
of the jungle ” in the Com-
munity from now on.

Facing questions in the
Commons as the EEC votes were
taking place in Brussels. Mrs
Thatcher said it looked as if
the farm . price * deal— which
Britain bad previously vetoed—
was being . implemented by
majority vote.

“If that is so, then tins is

quite without precedent. It
raises very serious issues and we
shall be considering what lo do
under the new circumstances.

•“I don’t think it would be
wise to go any further than that
at the moment It might still
be possible to pull it back,” she
said.

Mrs Thatcher was answering
Mr Michael Ancram, Tory MP
for Edinburgh South, who said
that many lifelong supporters

of the EEC had been “deeply
disturbed ” by some of the
actions of the Council of Mini-
sters during the last 48 hours.

In an apparent reference to
the EEC’s limited support for a
seven-day renewal of economic
sanctions against Argentina, Mr
Ancram urged the Prime Mini-
ster to “make it clear to our
partners that co-operation
through the rule of law cannot
be selective and these actions

can only be comfort to our
enemy and endanger the Com-
munity itself.”

After Liberal leader Mr
David Steel pointed out that the
Conservative group in the . Euro-
pean Parliament actually sup-
ported use of 1 the majority-
voting procedure, Mrs* Thatcher
said: “ They are as free as I am
to express their views. I do not
i agree with their views on the
Luxembourg Compromise.”

Lloyd’s underwriters’ links

with brokers ‘vital’

BY JOHN MOORE, CITY CORRESPONDENT

Inland Revenue
critical of local

Director disqualification

income tax plan covered by Act

LLOYD’S insurance under-
writers may have to set up their
own insurance broking com-
panies or establish joint ven-
tures with brokers in foreign
countries if they are to survive,
a Lloyd's underwriter told the
Lords select committee review-
ing the Lloyd’s Bill yesterday.

Mr Colin Murray, an under-
writer with It J. Kiln,
which is petitioning against a
clause requiring brokers to sell
shareholding links with under-
writing agents, said that if
underwriters were to survive
they must retain flexibility to
compete.

That would include the possi-
bility of underwriters owning
brokers to market their own in-
surance schemes or forming
joint ventures with broking
groups in overseas markets.

Mr Murray said the advan-
tage of brokers' shareholding
links with underwriters was
that it kept the two parts of
the insurance operation together
on a long-term basis. The par-
ties were able to forge trust
and respect for each other.

By Lisa Wood

BY JOHN MOORE

THE INLAND REVENUE yes-
terday criticised proposals for
a local income tax administered
by local authorities using
Inland Revenue information.

Lord Nugent of Guildford,
chairman of the committee,
asked Mr Murray to explain
what a broker gained from in-
cluding underwriting syndicates
as part of its corporate struc-
ture.

GOVERNMENT OF THE
STATE OF GOlAS _

MMEAMENTO DE GOlAS S/A—

BID NOTICE

INTERNATIONAL PUBLIC MD
No. 0X1*2 — SANEAGO

SANEAMENTO DE GOlAS S/A —
SANEAGO I nHla all Interested com-
panies to participate in Bid No. 03/42
tor the sap v*t of material and eouto-
ment far the expansion of tfec water
supply system of the city of Gottnla.
capital of toe State of Golds. Brazil.
The financial resources for toe Pay-
ments RsotHas *wa this bid wtl) be
provided by BNH — Nitkxud Housing
Bank oT the Government of tbe State
oT Gobs, thro e ah the Water and Sewer
Rnamjna Fe nd T AE-GO and by a
Ion to be token by BNH from toe
International Reconstruction and De*e-
lowrenr Can* — I TIDE. The contract
pnwfcHns for BNH and TAE-GO to
partJetpas? m the bid is Contract Cl N
No. D013/S2 en tere d Into between
BNH and Banco do Estado de CoMs
on January J3. 1982. The bW Is lor
tbe sbcoIt of valves, dampers, pipes
and •eomwsfoits of ductile cast Iron.
The amount ot toe bid band b CrS
1O0J}aa.{Ul (one hundred thousand
miaeho sl. The bid Is open to Brazmao
comp anies and companies from other
ISCB member countries. Switzerland
sari) TaSwan. The maximum supply
period is 120 (one hundred and
twenty! consecutive days.

The bid documents. Including the
applicable conditions, are available tor
aaosaltatioo and acquisition at the
fferroa oeot Bidding Com inbaton of
Saneeso. at Its bead ofbee at Avenlda
- a." NO- 570. Sctor Jardim Gotti.
Gottrta. The bid document* will be
delivered against presentation of the
receipt evidencing , payment to the
Saneeso Treasury of the enrolment lee
ot C.-53. 000.00 (three thousand
cuzeirosl. from April 29 to June 8.
1902. from B .00 a.m. to 11.00 a-m.
and 2.00 p.m. To 4.00 OJn. The bids
should be handed In at Sanaa pa's head
olbce. roam 305. an June 15. 1SB2.
t an n.m. at a public session before

at 3.00 p.m. at a' Public session before
the Permanent Bidding Commission of
Saneago.

GoiStlla. April 28. 1982

(SQd.) JOAO GUI MAR AES

□E SARROS
Technical Director

Seen:

(Sgd.) JCSE^UBALDO TELES

Hrcctor President

Mr Murray .said the broker
would retain profit commission
from tiie results and had a say
in what business was offered
to the syndicate. Lord Nugent
questioned whether this was in
the interests of the client. He
said it was difficult to under-
stand why a broker wanted to
retain an underwriting syndi-
cate over which he had no con-
trol.

Mr Terence Painter, Under
Secretary at the Inland
Revenue, told the Environment
Select Committee that the costs
of such a system independent
of tbe Revenue would be
enormous. The committee is
examining ways of financing
local government.

In written evidence to the
committee it was said that a
local income tax system inte-
grated with the present
national system would cost
about £110m (at 1981-82 prices)
while the local authority
administered scheme would cost
an estimated £220m.

Mr Painter said that if tbe
current computer system of
PAYE proceeded well it would
be completed by 1987.

MANY of the outstanding pro-
visions of the Companies Act of
1981 are to come into effect cm
June 15. following a series of
commencement orders published
yesterday by the Department of
Trade.

A wide range of the Act’s pro-
visions are activated, including
those on disqualification of
company directors: the purchase
by a company of its own shares;
disclosure of interests in shares,
including measures on “ concert
parties," and the form and con-
tent of company accounts.

Company legislation ' is now
the responsibility of Dr Gerard
Vaughan, Minister for Consumer
Affairs, who signed the new
order.

He said yesterday: “Those
parts of the 1981 Companies Act
I am now bringing into force
contain benefits for companies
of all sizes and for those who
have dealings with them.

“ Small companies in par-
ticular will find that the facility
to purchase their own shares
gives them greater flexibility,
enhancing their- ability to raise
capital and. to adapt the struc-
ture of their share capital to
changing circumstances.

“ Tbe Act also allows smaller
companies to file less detailed
information with the Registrar
of Companies.”

He added that public com-
panies would be better protected
from “a surreptitious build-up
of holdings in their shares by
the extension of the require-
ment to disclose interests in
shares to cover ‘ concert
parties.’,”

Dr Vaughan said that con-
sumers. suppliers “ and the vast
law-abiding majority of directors
will join me in welcoming the
tougher powers the Act gives
the courts to disqualify
directors.”

THE SDP- feces the possi-
bility of another damaging
split tonight over the
Employment Bill, and -the

certainty of accusations of
indeeisiveness from other'
parties.

SDP MPs decided yester-
day that tiie party should
abstain when the Bill being
■ piloted through the Commons
by Employment Minister Mr
Norman Tebbit comes up for
its Third Reading -tonight.
Abstention was meant to
cover the party's differences
over the Bill, bat. last night it
appeared to have failed to
achieve its objective. . Mr
Bill Rodgers, a member of
the . Gang of Four, and Mr
Richard Crawshaw, were
threatening to support the
Bill, while Mr John Grant
and Mr Bob Mitchell seemed
determined' to vote against it

Frantic behind the scenes
efforts were being made to
bring the rebels into' line'
and so avoid a repeat of the
split vote in February at the
Bill’s Second Reading,
which the SDP- leadership
believes badly damaged the
party’s standing with the
electorate.

The other members of the
Gang of Four .seemed hope-
ful that Mr Rodgers might
be persuaded to abstain. But
even if . ail fee" SDP MPs
"eventually agree to abstain,
fee SDP will still be at odds
with its ' partner in fee
Alliance because the Liberals
have already decided to sup.
port fee Bill.

Abstention also leaves fee
party open to accusations, of
indecisiveness on a key
policy issue. Last night Tory
and Labour MPs were claim-
ing feat failure to vote
would demonstrate what a
[“spineless” party' fee SDP
was.

Whatever happens, fee
vote ’ could add to the
Alliance's problems in fee
two forthcoming by-elections.

Tbe. Employment Bill pro-
vided fee SDP with one of
the first real tests of what
kind of party it wanted to be.
After a lengthy debate in
February, fee majority of
SDP MPs agreed to support
it on fee ground that the
party was committed to trade
onion reform.

- But five MPs refused to
toe fee party line, arguing
that it would be very damag-
ing to fee party to associate
itself with “union bashing,”
and Tided against the BILL
Som e, including Mrs Shirley
Williams, warned they would
not support it again at its
Third Reading.

The decision to ab st ain
yesterday was justified on fee
grounds that fee party was
still in favour of trade union
reform, but since its own
amendments to the Bill had
nod been accepted, it could
not honestly vote in favour
of it

Mr Rodgers, however, is
believed to have argued feat
it was essential that fee
parly demonstrated its com-
mitment to union reform by
backing fee BID, defects and
aQ.

MRS SHIRLEY WILLIAMS has
."agreed to give Dr David Owen-
a clear run to challenge Mr Roy !
Jenkins for the SDP leadership.

Mrs Williams announced yes-
terday that she would not be '
standing -and that fee- would
probably put her name forward,
for the job of . president of fee
party outside Westminster.; - '

it had been thought that. if.
Mrs Williams, once rated fee -
- party’s most . popular . politician,
agreed not to stand for -fee ,
leadership, fee could be sure of
facing -no opposition, for fee less
powerful job erf president^

But yesterday, in a further
indication of the friction Within: -
fee SDP, Mr Bill Rodgers, fee
fourth member of the existing-'
collective leadership, : made ., it
dear that he might', stand
against Mrs Wfeiams for the'
presidency. - ■■ . • - :r ' ■'

Ballot papers: for the leader-
ship election .win go out to all
party members on June ILand
fee result- will be announced
on July 2. Discussions will then
begin with fee Liberals over-
who should assume, the . leader-
shin of the Alliance. :

Technically, another ‘ . MP -
could still .declare himself as .a/
candidate for . the leadership,
hut.it looks like being a straight'
fight between Mr Jenkins and
Dr Owen, fee present leader of
fee party at Westminster. . ‘ :

Mr Jenkins ' remains the
favourite, but Dr Owen has
almost certainly increased his
standing among party members ,
by bis handling of the Falkland
Islands crisis^ and some of Mr
Jenkins’ supporters now believe
it could be quite 'a close-
contest. . *

The majority of SDP MPs
were hoping to avoid a leader-
ship contest on the grounds that
it could . strengthen the
impression of a divided party,
-and further damage fee SDP*s
standing with fee electorate.

V But immediately after. a vote
on fee method of electing fee
leader was' announced earlier
this month. Dr Owen made dear
feat he intended standing. He
has now started collecting fee
necessary ' nominations • from
other MPS. and is believed to
have fee support of Mrs Williams .

as well as Mr Mike Thomas, Mr
Tom McNally. Mr Christopher
Brocklebadk-Fowler and Mr
James Dunn..: V

At a meeting yesterday of fee
.party's steering committee. Dr
Owen ■ and ..Mr Jenkins
apparently agreed feat, if there
was. a- contest,, it would not be
fought in such a' way as to
damage. the party.

This -presumably means a
'fairly low-key election, but the
contest will inevitably highlight
the tensions within the party
between those like Dr- Owen,
who. want to - jo oil out for fee
Labour vote and -remain, as in-
dependent as possible from the
Liberals,, and those. - like Mr
Jenkins, -who see fee SDFs
fortunes as inextricably bound
up. - in" fee Alliance wife the
Liberals. - >

. ..If Mr -Jenkins, wins, he>will
become fee .president of the
Alliance, Wife fee support of Mr
David. SteeL .fee. Liberal leader,
but, if Dr; Owen were ‘to come
from -behind' and win. It could
create serious problems wife the
Liberals, who would be very
reluctant -to see Hr Steel step
aside for anyone other than Mr
Jenkins.

. Officially. Liberal policy is to
keep out-of. the SDP leadership
contest on tbe grounds feat it
is. an internal matter for the
Social Democrats.. But. 'if Dr
Owen were to campaign on the
basis, of ; distancing fee SDP
from fee Liberals, Mr Steel
might find it difficult .to -keep
quiet. ,

As it is,' Mr Steel. is coming
'under pressure- -from his own
party activists, to play a more
dominant role in fee Alliance.

. They are arguing that fee
local election results demon-
strate the . Liberals’ superiority.
The Association /of Liberal
Councillors, which in fee past
has been critical of Mr Steel’s
moves to forge an alliance with
fee. SDP, will discuss -at a meet-
ing this -weekend a motion say-
ing that fee time has come for
fee Liberal Party to , “ assert
itself as fee leading partner in
the AUiahce,” . .and . that fee
leader of the liberal Party
should “in- tine course” be-
come the Alliance's candidate
for Prime -Minister..

Alliance sets local parties
deadline for talks on seats

BY ELINOR GOODMAN

SDP AND LIBERAL leaders
yesterday gave local parties a
deadline of the end of the
month to complete negotiations;
oyer fee allocation of. parlia-
mentary seats.

Any constituencies which have
not been allocated by then will
be referred to independent
arbitration.

The two parties announced
last month that they -had
reached agreement covering
over 500 constituencies after
five months of negotiations

But they have still failed to
reach agreement in well over
50 constituencies. Including
Leeds, Durham, and a number

of areas Eke Wiltshire and
Dorset in which fee Liberals
• are. traditionally strong.

Yesterday’s decision to put a
deadline on. local negotiations
seems to' lave been, designed
to put Pressure on local parties
to reach agreement The hope
seems, to be feat by the end of
the month the number of cases
'for arbitration, will have been
reduced to well below 50.

A panel of arbitrators has
been set up, including Mr David
Watt, a director of Chatham
House, and Sir John Garlick,
a former permanent secretary
at the Department of Environ-
ment

■«" i

WGLii

Douglas Mann does the decent thing— but who’s watching?

SQRu£o

BE PREPARED, as Tom Lehrer
once memorably advised boy
scouts, and be careful not to do
your good deed if there's no
one watching yon.

Alas for poor Mr Douglas
Mann who, like fee rest of us,
was not prepared for the Falk-
lands crisis, as a result of which
almost no-one is watching as he
does the decent thing.

Mr Douglas Mann is fee MP
who, having defected from
Labour to fee Democrats, re-
signed his seat in fee South
London constituency of Merton,
Mitcham and Morden in order to
fight a by-election.

It was a courageous derision,
given that fee 1979 election had
turned his comfortable 6,191
vote majority into a meagre
618. Nevertheless at tbe time of
decision last November, when
the SDP was riding high in fee
aftermath of fee Crosby by-elec-
tion, hecould have expected to
hold' the seat wife a respectable
majority.

Even two months ago, when
SDP support was slipping from
its December peak, his record as
a good constituency MP would
have made him the front run-
ner in the by-election, the date
of which was decided is early
March.

And wife no single major
issue dominating national poli-
tics, be could have focused his

Margaret van Hattem on an overshadowed by-election

campaign on fee honourable
gesturewhich prompted the by-
election, picking up a large num-
ber of floating voles from those
who seek, but do not always
find, honour in politicians.

Today, wife fee Falklands
dominating radio, television,
the newspapers, the House of
Commons and almost every
other form of public debate,
few expect to see bim back in
fee Commons after polling day
on June 3.

Even Mr Douglas Mann is now
predicting, wife determined
optimism, that he will come “at
least second.” Some would rate
his chances lower than that.

The dear favourite at fee
start of feecam paigs is the Tory
candidate, Mrs Angela Kumbold,
the 49-year-old deputy leader of
the Merton Borough Council.

and is certainly far too busy to
bother with manicures or pro-
longed sessions at the hair-
dresser.

Mrs Rumbold is one of the
new breed of Tory women,
epitomised by her close friend
Baroness Young, leader of the
Government in the House of
Lords.

Not for Mrs Rumbold the
silk shirts and meticulous
grooming that characterises
Tory women’s conferences. She
probably does not own a hat

She holds a law degree and
a second degree in history of
art. and in her eight years as a
local councillor has been an
active member of various
education committees, locally
and nationally.

Mrs Rumbold is an unabashed
right winger. She favours hang-
ing. finds the abolition of
corporal punishment in schools
“ridiculous,” thinks it would
be extremely foolish to deviate
from the Governments
economic policies “ now that
they have been proved right”
and regards the Prime Minister
as a “ nice gutsy lady ” who is
handling the Falklands crisis in
the only possible way.

She has great respect for Mr
Enoch Powell, though on the
question of immigration she
finds him “ very narrow. ”

She also has a keen sense of
the ridiculous — enjoys gossip
columns and Private Eye — and
has a feel for populist issues.

On reaching fee Commons
she would like to do something
about London Transport —

possibly to help Mr David
Howell, Transport Minister,
privatise It — in order to cut
waiting times and stop buses
travelling in convoy. She con-
cedes there may he a case for
more sifetidies to LT but
dodges further discussion on the
grounds of ignorance of fee
economics. She would like to
abolish fee Greater London
Council.

The Labour candidate, Mr
David Nicholas, a 38-year-oid
primary school head teacher,
fought Iris first parliamentary
election in a safe Tory seat 12
years ago and has fee confident,
relaxed manner of a seasoned
campaigner.

Mr Nicholas is a committed
Left-winger who supports “all
Labour policy decided by con-
ference ” and would like to see
much more nationalisation of
privately-held assets.

In Parliament he would prob-
ably find himself on the Left
of fee Tribune Group. He does
not approve fee Government’s
handling of the Falklands crisis
and considers the despatch of
fee task force a mistake: “You
can't negotiate with someone

when you are holding a gun
at his head," he says.

But he would not care to be
labelled a Bennite — or anything
else, for feat matter. Canvassing
at a local shopping centre
yesterday, he insisted on some
definitions before be would
agree to discuss wife a shopper
the question of whether he was
a socialist.

These three are the main
contenders— fee National Front,
which polled 966 votes in the
1979 election and 51 votes in
the May local elections — is field-
ing a candidate but is not
expected to poll significantly —
and at the start of the campaign
it is still possible that any one
of the three may win.

The openness of the contest
underlines this by-election's
importance as a test of national
opinion at a crucial tune, and
all three parties are wheeling
out their big guns to support
their candidates. Mr Douglas
Mann, whose gesture in prompt-
ing the by-election has embar-
rassed and irritated some of bis
fellow SDP MPs, who are less
keen to put their position to the
test, is nevertheless being
helped by personal appearances
from the . entire gang of four

and Mr David Steel, fee Liberal
leader.

Mr Norman Tebbit, Mr Wil-
liam Whiteiaw, Mr Michael
Heseltine, Sir Geoffrey Howe
and Mr Cecil Parkinson will all
be appearing on platforms with
Mrs Rumbold; while Mr r
Nicholas is getting support from
right, left nad centre In the
Labour Party in fee persons of
Mr Michael Foot, Mr Peter
Shore, Mr Roy Hattersley, Mr
Ken Livingstone, Mr Tony Benn,-.
Miss Joan Lestor, and Mr Eric
Heffer.

If— and it is a big if— fee
Falklands -crisis were ' to be
speedily resolved and poshed off
the front pages in a wek or so,
Mr Douglas Mann might yet be.
able to shift attention hack to
the .personal issues on which he
would prefer to campaign, and .
might yet hoi dhis seat-

If he- does, fee; sighs of
pleasure and relief from. Ms ‘
fellow SDP MPs will not he
un mixed. For- a victory in such.

unpromising circumstances
increase presure on them to do .
likewise — presnre which they,
appear determined to resist...

But if the May 6 local elec-
tions are a true test of public
opinion, . they have little cause ,
to worry. The Tories*, with.';
12,000 votes of fee 27;504> votes

'SfiTR

Al

■^N Hi

^10 i

•t •

’ Rrrice Douglas Maim
good constituency MP

cast" won i5 _ seatsj Labour, with
9,00<> . votes, . won 13. Tbe
Alliance, wife 5,500 votes, won
not a single seat. :

J 979 general election- B.
Douglas Maim (Lab) -21,668;
D, Samuel y (Con) 21,050; -ff.
Locked 'Peftyw&i

(Nai Frcmt) ]96€. ^ :_ yy-.yY. .

TWA to and through the USA

eles non-

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tm

Non-stop 747 service, departs 11.00 daily. From £185. TWA also flies to

over 50 cities throughout the USA.

Ifaufoe going to like us

Main Agent

Fm^ciai-Times Wednesday May .19 1982

est

!; Di®

•MS

GARDENS TODAY

17

Chelsea bouquets and brickbats

BY ROBIN LANE FOX

NOT A blemish on the peonies,
not a sign of- wilt' on the
clematis: the Chelsea Flower
Show, the world's finest, is. a
triumph over weather which has
been enough to make . any
exhibitor tremble. Until Fri-.
day evening, you can enter the
magic world of the Main Tent
and marvel at the shapes of
roses and the perfection of the
daffodils before returning to as
bad a year for greenfly as I can
recall in your corner of the real
■world. There are no extra-
vanganzas this year, no floral
cradles for future royal babies,
or models of HMS Hermes in
red, white and blue petunias.
On one small table, a violetta
called 'Malvena was taking a
quiet bow, but I do not think it
bad changed its spelling for the
occasion.

Where should you start your
fight through the record crowds?
You will probably, have to send
for the Marines in -order to
cruise at any speed down the
first two avenues -which hit you
on escaping from the outdoor
gardens of the .year. However,
a skirmish up and down their
length will give you the best
of the peonies, clematis, alpines
and strawberries, from Kelways,
Fisks, Ingwersen and Ken Muir
respectively.

The top corner, by the usual
entry-points, contains in its
junction Harkness roses and
their handsome new yellow rose
Mountbatten which has already
swept most of the prizes in
Britain and France, The leaf
looks particularly fresh and
elegant, but I confess to miss-
ing the scent entirely. -It will
not, therefore, find a home with
me. but instead, I will hurry

for their -new climber. Breath
of Life. Tucked high up at the
rear of their exhibit, this apri-
cot-pink rose is excellent news.

After the first two alleys, you
could weave an ingenious
course along- the other end of
the tent, sampling the first
three stands up each alleyway
away from the tenting. You
would then take in the superb
display of ferns by that maestro,
Maurice Mason, whose large
exhibit is the tent’s botanical
star turn. Mattocks and Peter
Beales would give you tbe pick
of the other roses, new and old-
fashioned respectively. Bressing-
bam Gardens has some subtle
herbaceous pJaDts. not least a
double aquilegia called- Mrs
Barlow.

Weaving your way politely,,
you now reach the high spot of
the show. Among the educa-
tional brochures and advice on
restoring iawns, Brenda Hyatt
of Bluebell Hill, Chatham. Kent,,
has brought us a large table of
show auriculas and primroses,
flowers not seen at Chelsea since
1966. She wins my bouquet for
the exhibit of the year, so
please push right across to the
under-crowded far side of the
tent and visit it.

In the 1960s, Mrs Hyatt
' wrote to her gardening maga-
zine and asked for the source
of* a green-flowered primrose
which it had illustrated the
week- before. Imagining that
£5 would buy several dozen, she
sent off for the old-fashioned
Greensleeves and received only
two plants in return. But these
started her on her long path as
a nurserywoman, exhibitor and
seed-supplier on the Auricula
Society lists.

1 cannot imagine how anyone
could bring such fresh flowers
from tbe greenhouse after the
past warm fortnight, yet their
colours are clearly defined and
still set perfectly with that,
floweiy dust on the great show-
varieties which grow under
glass. ' Mrs Hyatt confessed to
moving her entire exhibit from
the ■ greenhouse to her own
house throughout the previous
week, keeping the auriculas for
-coolness under her bed. These
.are the classic Victorian
flowers seen here in a scarcely
'-credible range from reds on pale
green backgrounds to violet-
blues on ere am- white. -

Among the magnificent large
exhibits, these small, private
growers continue to risk Chelsea
on their own account. . This
year, they are joined by Mrs
Dry den and a fascinating show
of rare Lewisias for alpine
beds, while recent arrivals like
Richard Cawthome, the king of
the Violettas' and Tony
Clements, clergyman turned
grower of African violets, are
on top form, as always. Hunt
them out, for among those
exquisite carnations and double
begonias Chelsea is still bring-
ing new, small suppliers to the
mass public's eye.

Outside, the picture is more
mixed. At last we have a choice
of tasteful garden furniture.
Chatsworth Carpenters live up
to their name, a stand showing
designs which the estate car-
penters at Chatsworth will run
up to classic, well-chosen pat-
terns. White painted, this is a
welcome ornament fbr town
gardens, especially, and 1 would
be glad with their Powis Castle
range of upright seats at a
strategic point in any planting.

The. outdoor gardens divided
more - sharply- The best is
Merrist Wood's cool, clean .Roof
Garden, a concept well suited to
a show. It is prettily faced
with thin York stone and planted
with restraint and coherence in
colours we could all appreciate.
Others are more shaky.
Modernists will find a spectacu-
lar essay in red and pink
modernism by Dan Jacobson,
while conservationists will like
the front of the Sunday Times
natural British garden, while
worrying about conserving the
rear half for which the weather
has already proved too much.

When smaller, private growers
have made such a mark in the
Main Tent, it saddens me to
end with a bouquet of barbed
thorns for the two biggest com-
panies at the show. Why must
ICI stage something so vulgar
as a mock sort of Wendy cot-
tage's facade with a prissy
setting of the worst bedding out
and pergola in front of it. Is
there no more wonder to good
old Woollies than a zig-zag
muddle of poles — pond, mock
walling and mixed planting,
cramming anything from
heathers and conifers to varie-
gated host as into a single out-
door site? I wish they could
hear the comments passed by our
leading landscape designers on
seeing this waste. Why cannot
taste and big Industrial backing
come back together and produce
something for Chelsea beyond
the style which keen gardeners,
by tbe 1980s, have long since
learned to deplore?

In last weeL'a column a source lor
a Lemon Lily was given be Wakehurat
Nurseries. Hewkhurst. 1 1 should have
beBn Wash field Nurseries, Hawkhurst,
Kant.

BBC 1

6.40-7.55 am Open University
(Ultra High Frequency only).
9.38 For Schools, Colleges. 10.00
You and Me. 10.15 For Schools,
Colleges. 12.30 pm News After
Noon. ' 1.00 Pebble Mill at One.
1.45 Over the Moon. 2.01-3.00
For Schools, Colleges. 3.53
Regional News (except. London).
3.55 Play School. 4.20 Scooby
Doo, Where Are You? .4.40 Play
Away. 5.05 John Craven’s News-
round. 5.10 Wildtrack.

5.40 News.

6.00 Regional News Maga-
zines.

6.25 Nationwide.

7.00 Up a Gum Tree with
David Bellamy (London
and South East only).

7.30 Wednesday Film: “Zebra
in the Kitchen," starring
Jay North, Martin Milner
and Andy Devine.

9.00 News. .

9.25 Taxi (American comedy' -
series).

9.50 Sports night: Rugby

League: Hie State Express
Challenge Cup Final Re-,
play: Hall v Widaes; FA
Cup Preview plus high-
lights of the UEFA Cup
Final second leg.

11.08 News Headlines.

11-10 The Big Time: Members
of a gardening dub in
Dorset design a garden
for the Chelsea Flower
Show.

TELEVISION

Chris Dunkley: Tonight’s Choice

Tonight brings one of those head-on clashes between two
promising programmes in the same category which drive viewers
wild with frustration: at 9.30 BBC-2 ■ screens the first of four
plays based on Antonia White's Frost In Hay and 15 minutes
later TTV starts the two-hour drama Looks And Smiles made by
the writer/director/cameraman trio responsible for “Res,” Barry
Hines, Ken Loach and Chris Menges.

Television chiefs justify these collisions by saying they maxi-
mise audiences: if each drama went out opposite a comedy or a
soccer match each would suffer, they say. Anyway, they add,
real competition sustains the highest possible standards and in
television that inevitably means like-against-like. This suggests
that the high rating, however unenthusiastic the viewers, is
more important to them than a small appreciative audience— the
hard core of drama enthusiasts who would watch both pro-
grammes, given the chance.

■ As it happens both productions are likely to be available
again, so tonight’s choice is not critical. Looks And Smiles,
which is shot in black and white and concerns the sodal, sexual
and unemployment agonies of teenagers In Sheffield, has already
won the Cannes prize for Contemporary Cinema and can be. seen
in ,the cinema. Frost In May, about the evils of religious indoc-
trination, starts with its nine-year-old heroine entering a convent

LONDON

9.30 am Schools Programmes.
11.54 Dick- Tracy Cartoon. 12.00
Windfalls. 12.10 pm Rainbow.
12.30 Play it Again. 1.00 News
with Peter Sissons, plus. FT In-
dex. 1.20 Thames News with
Jane Corbin. 1.30 Crown Court.
2.00 After Noon Plus with Mary
Parkinson and Kay Avila. 2.45
The Six Million Dollar Man. 3.45
Three Little Words. 4.15 Bugs
Bunny. 420 Animals in Action.
4.45 Sunny Side Up. 5.15 Mr
Merlin.

5.45 News.

6.00

with

and

BBC 2

6.40-7.55 am Open University.
1020-10.45 Gharbar.

1L00-11-25 Play School.

1230-120 pm Open University.
2.15 Racing from Goodwood.
5-10 Tbe Villa Farnesina. .
t5A0 Charlie Chaplin in “The
Immigrant"

6.15 The Harrisons Don't Go
to School.

6.55 The Ascent of Man.

7.45 News Summary.

7.50 Hooked!

.830 Chelsea Flower Show.

9.00 Butterflies by Carla Lane.
930 Frost in May.

1035-11.45 NewsnighL

Thames News
Anlrew Gardner
Tricia Ingrams.

635 Help! The community
action programme with
Viv Taylor Gee.

6.35 Crossroads.

7.00 Where There's Life ...

7.30 Coronation Street

8.00 1982 British Beauty Cham-

pionships introduced by
Judith Chalmers and

Peter Marshall from the
Wembley Grand Hall.

9.00 News.

+9-45 Looks and Smiles.

11.45 Kaz.

12.40 am Close: Sit Up and
Listen with Michael

Hordern.

t Indicates programme
in black and white

Ail IBA Regions as London

except at the following times:

ANGLIA

1.29 pm Anglia News. 2-45. Trapper
John. 5.15 Jgnglos- 6.00 Aboui Anglia.
11.45 Speedway. 12.30 am Red ampler
Homims.

BORDER

1.20 pm Border News. 2.45 The Las!
of Summer. 5.15 Survival. 6.00 Lopk-
9 round Wednesday. 11.45 Border News
Summary.

CENTRAL

1.20 pm Central News. 2.45 The Body
Human. 5.15 DifTrent Strokes. 6.00
Crossroads. 6.25 Central News. 11.40
Replay: It Takes a Thiel.

CHANNEL

1.20 pm Channel Lunchtime News,
What's on' Where and Weather. 2.45
Trapper John. 5.20 Crosroeds. 6JJQ
Channel Report. 6.30 Bailey's Bird.

11.45 Danger UXB. 12.45 am News and
Weather in French - loll owed by
Epilogue.

GRAMPIAN

3.25 am First Thing. 1.20 pm North
News. 2.45 Trapper John. 5.15 Janglas.-

6.00 North Tonight. 11.40 Saachd
Laithean (the week’s nows in Gaelic).
12.10 am North Headlines.

GRANADA

11.54 am Wauoo Wattoo. 1.20 pm
Granada Reports. 1.30 Exchange Flags.

2.00 Crown Court. 2-30 Putting on the
Style. 2,45 The Last of Summer. 6.08
This Is Your Right. 6.05 Crossroads.
6.30 Granada Reports. 11.45 City of
Angola.

HTV

1.20 pm HTV News. 2.45 Fantasy
Island. 4.15 Ask Oscar I 5.15 Private
'Benjamin. 6.00 HTV News. 11.45
Ladies' Man.

HTV CYMRU/WALES— As HTV WEST
except: 12.00-12.10 pm Ty Bach Twr.

4.15 Here's Boomer. 4.45-5.15 Liygad
Baicud. 5.00 Y Dydd. 6.15-6.35 'Report
Wales.

SCOTTISH

7.20 pm Scottish News. 2.45 The
Love Boat. 5.10 Tales of Crime. 5.20
Crossroads. 6.00 Scotland Today
followed by Action tine. 6.30 Reocrr.
11.45 Late CaH. 11.50 Prc-Cefebruy
Snooker.

TSW

1.20 pm TSW News Headlines. 2.45
Trapper John. 5.15 Gus Honoybun’s
Magic Birthdays. .520 Crossroads.
6.00 Today South West. 6.30 Tale
Views. 6.40 Soonsweek. 9.45 TSW
Laid News. 11-45 Danger UXB. 12,45 am
Postscript. 12.50 5outh West Weather.

TVS

' 1.20 pm TVS News.' 2-4S Trapper
John. 5.16 Welch This Space . . .
Good News of tha Woefc. 5.30 Coast
to Coast. 6.00 Coast to Coast (con-
tinued). 11.45 City ol Angels. 12.40 un
Company.

TYNE TEES

- 9.20 am The Good Word. 9.25 North
East News. 1.20 pm North East News.
1.25 Where the Jobe Are. 2.45 The
Lovb Boat. 5.15 Private Benjamin.
6.00 North East News. 6.02
Crossroads. 6-25 Northern Life. 9.45
North East News. 11.45 Pavilion Folk.

12.15 am Lot's Celebrate Ascension
Day.

ULSTER .

I. 20 pm Lunchtime. 4.13 Ulster News.

5.15 Good News of the Week. 5.30
Good Evening Ulster. 6.00 Good Even-
ing Ulster. 9.44 Ulster Weather. 11.45
News at Bedtime.

YORKSHIRE

II. 55 am Tha Undersea Adventures
of Capum Nemo. 1.20 pm Calender
News. 2M Charlie's Angela. 5.15 Pri-
vate Benjamin. 6.00 Calendar (Emlay
Moor and Belmont editions). 11-40 The
Living Legends of Jan and Blues—
(Tha Dave Brubeck Quartet).

(S) Stereo broadcast (when broadcast
1 on VHF)

RADIO!

5.00 am As Radio 2. 7.00 Mite Read.

9.00 Simon Bates. 11.30 Dave lee
Travis. 2.00 pm Steve Wright.' 4J0
Peror Powell- 7.00 Radio 1 Mailbag -
g OO David Jensen. 10.00-12.00 John
Pod (S).

RADIO 2

5.00 am Ray Moore (S). 7 JO Teriy
Wocijn iS) 10.00 Jimmy Young (S).

12.00 Gloria Hunnilord (S). 2.00 pm
Ed 5tewart (S>. 4.00 David Hamilton
(SI. 5.45 News,. Sport. 6.00 John Dun"
IE). 8.00 Alan DeU with Dance Band
Da*3 8.30 Among Your Souvenirs fSJ.
9.15 Semprim Serenade (S). 9,55 Sports
Desk. 10.00 Tom Menard tells Lota)
Tales. 10.15 The Cambridge Buskers.
10.30 Hubert Gregg says Thanks lor

RADIO

the Memory. 11.00 Bnan Matthew with
. Round Midnight (stereo (torn midnight).
1.00 am ■ Encore (S). 2.00-6.00 You
and the Night end the Music (5).

RADIO 3

. G.5E am Weather. 7.00 News. 7.05
Your Midweek Choice <S). B.OO News.
6.05 Your Midweek Choice (continued)
(S). 9.00 News- 9.05 This Week's Com-
poser: Schubert (S). 10.00 BBC. Welch
Symphony Orchestra (S). 11.JB

Ciemsnti piano recital (S). -t2M
Vienne Philharmonic Orchestra (St.

1.00 pm News. 1-05 Cancan Hall (S).

2.00 Music Weekly (5K 2-50 British..
Music (S). 4 00 Choral Evensong (S).
4.55 Newa. 5.00 Mainly for Pleasure
(S). 7.00 Collegium Aureum (S). 7.45

Gyorgy ligati: London Sinfonietta con-
cert from the Queen Elizabeth Hall
London, pan 1 (5). 8.15 Six Conti-
nents (S). 8.35 Gyorgy Ligeti, pan 2
(S). 9.25 The Honaywood File by K. B.
Creswell. 9.30 Hindemith Conducting
The New York Philharmonic. 10 AO
The Country of iho Pointed Firs. 11.00
News. 11.05-11.15 Cam's rata Bern (5).

RADIO 4

' 6.00 am News Briefing, ff.10 Farming
Today. 6.25 Shipping Forecast 6.30
Today. 8.33 Yesterday in Paihament.
.8.57 Weather, travel. 9.00 News. 9-06
Midweek: Henry Kelly (S). 10.00 News.
10.02 Gardeners' Oucstion Time visits
County Durham. 10.30 Daily Servian.

10.45 Morning Story. 11.00 News. 11.03
Bakcr'a Dozen. 11.52 It's a Bargain.

12.00 News. 12.02 pm You and Yours.
12.27 The Other Side ol Silence. (5).
12.55 Weather, travel, programme
news. 1-00 The World at One. 1.40
The Archers. 1.55 Shipping Forecast.

2.00 News. 2.02 Woman's Hour.. 3.00
News. 3.02 Afternoon Theatre (S). 3.47
Time for Verse. 4.00 News. 4.02 Village
Vignette. 4.10 File on 4. 4.40 Story
Tims. 5.00 PM: News Magazine. 5.50
Shipping Forecast. 5.55 Weather, pro.
gramme news. 6.00 News, Including
Financial Report. 6.30 Frank Muir Goes
Into . . . Horror (S). 7.00 News. 7.05
The Archers. 7.20 Checkpoint. 7.45
A World in Common. 8.1S In Search
of the Golden Pleonie. 8.45 A Warrior
I Have Been (S). 9.30 Kaleidoscope.
9.59 Weather. 10.00 Tha World Tonight.
10.30 Detective., 11.00 A Book at Bed-
time. 11.15 The Financial World
Toniqhf. 11.30 Today , in Parliament.
12.00' News.

NAGSHOTWIN

wspais

SUCCESS

WASHINGTON, D.C.

A Rjsnaissanceof
Qradousness

A luxury hotel in the great.
European tradition. Elegant, quiet,
unruffled — never a convention.

THE MADISON

VosUatOm's Cimet Mints
U&&M5trsde*NStyzfa»M«]Bt«* l D.<i20QOS
Tel«64245'
or see your travel agent

B. Cojuc, 'Proprietor

FT COMMERCIAL LAW REPORTS

Guarantor’s liability for extended facility

FIRST NATIONAL . FINANCE CORPORATION v GOODMAN
Queen's Bench Division (Commercial-Court): Mr Justice Bingham: May 13 19S2

A GUARANTOR is liable for
advances made i>y a bank
which has, hy amalgamation,
acquired the interests of the
original lender named in the
guarantee, if the guarantee,
strictly construed, was dearly
intended to cover future -
advances made by the

lender’s successors or assigns,
or by any hank with which it
amalgamated.

* ★ *

Mr Justice TSingTiam so held
when giving judgment for Lbe.
plaintiff bank. First National
Finance Corporation Limited
(FNFC), in its claim for £338,165
against the defendant, Mr Harry
Goodman, under a written
guarantee.

HIS LORDSHIP said that Mr
Goodman was an entrepreneur in
the package holiday business. He
entered into a scheme with
property developers to develop
West End properties as hotels
and fiats for occupation by
visitors to London in the
summer months, and by other
lettings in the winter.

A new company, Apartotel,
was incorporated on January 20
1970. Mr Goodman and the de-
velopers were its directors and
shareholders. Before the com-
pany was formally incorporated,
exploratory meetings to discuss
finance were held with Cassel
Arena, a bank which specialised
in property finance.

By a letter dated March 3 1970,
Cassel offered Apartotel an on
demand facility of £40,000, re-
viewable after 12 months. The
offer was accepted on behalf of
Apartotel by Mr Goodman and
the other directors. Oh June 2
1970 they each signed a
guarantee on Apartotel’s account,
and three days later Cassel
advanced the £40,000.

Over the following months
Cassel made a number of
additional facility letters to
Apartotel. By April 1972, when
the second year of the facility
ended, Apartotel owed Cassel
£146,106. The facility was not
renewed until the following

September.

Between April and September
1972, Cassel merged or
amalgamated with Its parent
company, FNFC. which acquired
all Cassel’s business and the
benefit of ail subsisting contracts
with effect from January 1 1972.

Ap a rto lei's Facility and account
continued exactly as before with
the same documentation and
account number. Neither Mr
Goodman nor Apartotel was in-
formed of the change.

Between . April and September,
also, Mr Goodman and tbe de-
velopers fell out. with the result
that in about September 1972.
Mr Goodman ceased to be either
a shareholder .or a director of
Apartotel. News of his departure
reached the ears of FNFC by
about April 1973.

Afler September 1972 further
advances were made, by FNFC
to Apartotel 'and by May 1977
the total topped £670,006. On May
4 1977, FNFC demanded repay-
ment from Apartotel and in .
June 1977 it was resolved that
Apartotel be wound up. After
substantial realisations had
taken place, FNFC demanded
payment from Mr Goodman
under his guarantee. The sum
claimed was £338,165.

Mr Goodman in his defence
said that, having regard to the
letter of March 3 1980. he was
only liable up to £40.000, and
only for the 12-raonth period of
the first facility.

The guarantee, on its face, was
expressed to be an all moneys
guarantee with no upper limit
and no limit of time.

The evidence showed that
before the guarantee was signed
the parties, including Mr Good-
man. expressly contemplated the
prospect of further advances.
Also, although Cassel reserved
a right to renew the facility at
the end of a year, both parties
' confidently expected the re-
lationship to continue for a much
longer period if it ran smoothly.

Another defence was that Mr
Goodman was only liable in re-
spect of advances made by
Cassel, and not those made by

FNFC. . ...

The guarantee opened with
the words; “In consideration -of

Cassel Arenz and -Co Ltd (here-
inafter called the Bank which
expression where the context so
admits includes the Bank s
assigns) at our request making
or continuing advances . .
Clause 2 provided, “This,
guarantee . . - shall extend to
cover . . any sum or sums of

money which shall . . . constitute
any balance due -from the
customer to the Bank on any
account whatsoever." Clause 18
provided that “ In this guarantee
where the context so admits
. . . ‘the Bank ’ includes its suc-
cessors and assigns and any
company with which it may
amalgamate.. . ."

Mr Getz for Mr Goodman
argued that the guarantee was
addressed to Cassel in considera-
tion of the making or con-
tinuing of advances by Cassel.
The reference to Cassel in the
opening 'words did not include
Cassel’s assigns or successors,
or any company with which
Cassel might amalgamate. Those
might only be read into the
guarantee where reference was
made to the •“ Bank."

Hence, said Mr Getz, the
guarantee on its face only con-
templated advances by Cassel,
and did not extend to future
advances. Guarantees were to
be construed strictly and if there
were any doubt as to their mean-
ing, they should be construed
contra proferentum [that _ is
-against the person claiming
under the guarantee].

Mr Thomas for FNFC sub-
mitted that a reference in clause
1 to “moneys . . . which are now
or shall at any time be due from
the customer to the Bank . . . ”
expressly contemplated that
Cassel might not be tbe sole
party making advances to Apar-
totel.

He said that references in the
guarantee plainly showed that
advances would he covered by
the guarantee, although not
made by Cassel. Clause 1 (Bi

referred to “all moneys obtained
from or liabilities incurred to
the Bank”; clause 5 provided.
"The Bank shall be at liberty
.... to enlarge or vary any
credit to the company": and.
clause 17 (C> provided. “Notwith-
standing the death of any party
hereto this guarantee shall
extend to secure all advances or
payments made by . . . the Bank.”

His Lordship accepted Mr
Getz's submission that a
guarantor should not be exposed
to liability beyond what was
normal, without very- clear
language, and that any ambiguity
in the guarantee should be
resolved in his favour.

The question in the present
case was whether, on a fair but
strict reading, the language of
the guarantee clearly showed
that it was to apply not only to
advances existing at the date of
amalgamation. but also to
advances made after that date.

The guarantee had the wider
effect. FNFC was a “company
with which Cassel Arenz may
amalgamate" under clause 18.
As such it was a “ Bank.’
authorised under clause 5 to
enlarge or vary any credit to
Apartotel, and to make advances
and payments under clause
17(C). Under clause 1(B) the
guarantee covered all money
obtained from FNFC, as a
“ Bank.”

It was a harsh result for Mr
Gnndman. When the bulk of the
large advances were made, he
had no interest in or connection
with Apartotel and had no
knowledge of the advances. They
were of no benefit to him. He was
now burdened with a great
liability.

FNFC was entitled to judg-
ment for the sum claimed.

For FNFC: IVerille Thomas QC
and Colin Smith ( Titmuss, Sainer
and Webb ).

For Mr Goodman: Wilfred Getz
OC and Richard Behar i Stringer.
Saul and Justice).

By Rachel Davies

Barrister

RACING

BY DOMINIC WIGAN

THE DERBY market has been
subjected already to severe
buffeting. First there was
Peacetime’s coughing. Then,
news about Golden Fleece trill
have caused a shake-up by
about 3.45 this afternoon.

' By then Peacetime will have
tried to prove all is well with
him in Goodwood’s Schroder
Life Predominate Stakes. These
see the unbeaten Ivano back in
action.

It is dangerous to side with
a horse which has been under

a cloud. I have no intention,
however, to desert Peacetime.
He looked every inch a Derby
colt at Sandown before his set-
back.

Sent to the Esher course by
a quietly confident Jeremy Tree
after a highly impressive
gallop. Peacetime stamped his
authority there from far out in
the Guardian Classic Trial

Allowed into the lead fully
2.5 furlongs from home, Quiet
Fling's full - brother never
looked like relinquishing his
grip on proceedings in spite of
signs of inexperience. Two
lengths ahead of Be My Native
at the line. Peacetime had the

third-placed Jalmood six
lengths behind him.

It is difficult to know what
to make of the form. Be My
Native clearly failed to run his
best in the Mecca Dante on bis
subsequent appearance. - Jal-
mood, who missed the break
in the Guardian race, may
simply have outstayed a colt
with stamina limitations when
subsequently beating Mr
Fluorocarbon at Lingfleld.

That said. Peacetime could
do no more than win impres-
sively in a fast time when
making only his second appear-
ance at Sandown. Now almost
certainly back to his best, in

the belief of his stable the
Nijinsky colt ought to have the
measure . of Ivano. the Dee
Stakes winner.

No one outside Beckhampton
will be looking to Peacetime's
performance with more interest
than those instrumental in
initiiatiog the Guardian Trial.
Since its inception the race has
been won by Troy, Henbit and
Shergar on their way to success
at Epsom.

GOODWOOD

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2.30 — Everwarm**

3.30 — Peacetime***

4.00 — Going Going*

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THE MANAGEMENT PAGE

EDITED BY CHRISTOPHER LORENZ

comes into

Television manufacture saved the UK audio company. Jason Grisp reports that ,
its future strategy includes today’s decision to move into the video market

FIDELITY RADIO is a bit like
an old biplane, reflected one
analyst a little unkindly. 41 It is
not likelv to fly at a great alti-
tude and from time to time Ihe
engine splutters to a halt leav-
ing onlookers holding their
breath — then suddenly just
before it hits the ground it
soars back into the sky."

Fidelity Radio is the smallest
British company making tele-
visions and the largest UK
manufacturer of audio equip-
ment — an area dominated by
Far Eastern companies. Two
years ago the company founded
by the present chairman. Jack
□ickman. just after the Second
World War with his demob
money, looked as if it had u
very’ short future.

In early 1980 it sacked 100
of its total of 6fX) employees
and put the rest on a three day
week. At the time it was totally
dependent on radios, tape re-
corders, music centres and
other “ mid-fi ’* audio equip-
ment. The audio market had
collapsed and shops were nut
restocking because of high
interest rates and the lack of
prospects in the market.

Steve Dickman: “I have a production floor making whatever is required with a common overhead'

Reputation

Sales in the year ending
March 31 19S1 fell to £17.7m
and a trading loss of £2.7m
incurred compared with a
profit of JtO.Sm. The company's
reputation fell even fasier and
its chances of survival looked
slim.

When Dickman announced the
sackings and the cutbacks the
only hope seemed to lie in his
plan to launch a black and
while television later -in the
year. And that was not much
of a hope — the great majority-
of small black and while tele-
visions are mass-produced with
considerable economies of scale
and cheap labour in the Far
East.

Against the odds, however,
the television appears to have
brought Fidelity back from the
brink. Last month it launched
a 20-inch colour television after
a year's success with a small
14-inch colour set launched on
the back of that first black and
white TV.

Ironically Jack Dickatian had
for many years been contemp-
tuous of making televisions in a
small company. “Making tele-
visions is a rich man’s game."
he used lo say. At that lime
several British companies just
had or were al>out to get out
of the business, including Dccca
and Rank.

Steve Dickman, the eldest of
the three sons on the board
and appointed deputy m&naging
director last year, appears lo
have been the instigator of his
father's change of mind. He
points out that Fidelity was

obliged to introduce the black
and white set first because it
lacked the credibility to per-
suade retailers to buy a colour
TV. But he says it was always
the intention -to move, up to
colour televisions and he adds:
*' At the end of the rainbow
there are videocassette
recorders."

The first black and white
television took six months to
develop and was launched in
June 1980. By August the
company was back on a five-day
week and by September it was
rehiring. staff. Early last year
Fidelity— now with a proven
ability in making black and
white sets — began tailring to its
customers about a small 14-inoh
colour television with remote
control at under £200, under-
cutting the market by around
£30.

Initial plans to produce I5,0nn
sets between June and Christ-
mas 1981 were more than
doubled to 40.000 and in the
end the problem was supplying/
the demand. Retail . outlets
include Rumbelows and Currys
and the sets -are also sold
through mail order by Little-
woods and GUS. So, a company
which three years ago made no
televisions at all now derives
half its turnover from them.

In. the late 1970s after
Hitachi was prevented from
setting up a television plant in
the UK, the National Economic
Development Office (NEDO)
commissioned a report from the
Boston Consulting Group which
concluded, among other things,
that to get the benefits oF auto-
mation and economies of scale
a company needed to produce

at least SOO.ono sets a year.
Today analysts say that figure
would be nearer lm sets.

Yet little Fidelity — which
produced fewer than 60.000
colour sets in the past financial
year ending March 1982 — is
apparently able to defy conven-
tional wisdom. Although tbe
company made a £0.5m loss in
th first half of the financial
year, it is thought to* have made
a small profit in the second six
months.

Automation

When Thorn EMI. Britain's
largest manufacturer of TVs
made a major revamp of its
factories at Gosport m Hamp-
shire, and Enfield. London, with
automation and a substantial
redesign of sets to reduce com-
ponents, it cost £ 13m.

By contrast Fidelity's entry
into black -and white sets cost
£80.000 and in lo colour tele-
visions another £30,000. Most
of that cost was the design and
development of lest equipment
“The point is I don’t have a TV
factory," says Steve Dickman.
"I have a production floor
making TVs, radios and what-
ever is required, with a com-
mon overhead."

Fart of that common over-
head is two expensive automatic
insertion machines which were
originally bought for audio pro^
ducts. The two machines, cost-
ing £200.000, are used for
mounting components on all the
printed circuit boards tpeb)
used in Fidelity's products,
from music systems to televi-
sions. .Nearly 65 per cent of
the components in the televi-

sion peb are put in automatic-
ally.

In a larger television factory
a number of automatic inser-
tion machines would be dedi-
cated to producing boards for
the sets. The cost at Fidelity
is shared, in the sense that they
are used for other products.

Another aspect of the
Fidelity’ operation is the
fiexihle use of staff, who are
irained to switch from product
to product. In the morning,
for instance, most of the pro-
duction staff may be making
colour televisions, then, in the
afternoon that line will be at' a
standstill and the effort is put
into making audio racking sys-
tems.

Steve Dickman, 36, is increas-
ingly taking over the running of
the company from his father.
Previously works director he has
little time for Ihe creature com-
forts many a deputy managing
director seeks as essential.
Jacket off. collar ^open and
sleeves rolled up -he takes an
obvious delight in showing off
the plant and emphasising the
low overheads, only grudgingly
admitting that administrative
staff are necessary, an approach
very reminiscent of his father.

In spite of the company’s
flexibility and low overheads it
is already beginning to feel the
pinch in black and white tele-
vision where prices have been
falling. Dickman argues that if
transport costs arc taken into
account the Far Eastern sup-
pliers must be selling at below
cost.

Although Fidelity is commit-
ted to producing small black and
white televisions until the end

of this year it would seem un-
likely lb continue after that up-
less prices rise. And one dose
observer of Ihe industry warns
that Fidelity's initial Success will
be short-lived if it does not move,
up market as it will not be able
to compete with '“-cheap and
cheerful ” products from the Far
East.

One prospective problem is
the expiry of the licences for
the PAL colour television. system
next year which may open the
gates for cheap colour televi-
sions from Hong Kong; South
Korea, Singapore -and Taiwan
and possibly others. However,
there are moves within tbe EEC
to provide some protection for
its colour television industry.

Although . Fidelity failed
when it tried to move upmarket
in audio equipment it Intends
to follow this route in tele-
vision. Its chances of suceeding
should be enhanced by the dif-
ferences in the market. Where-
as the TV industry is competing
with a widening range of pro-
ducts, in the audio market it is
basically quality that counts.

The first step was the recent
launch of its 20 inch set and it-is
likely that it will launch a 22
inch model at some stage; this
is the maximum size achievable
on Fidelity’s existing chassis.

Nest year Fidelity plans to
offer sets with teletext which
enables the viewer to receive
Oracle and Ceefax, the broad-
cast pages of information from
I TV and BBC. The company
will market a videorecorder by
tbe end of this year from
Sanyo, one of the Japanese
licencees of JVC’s best selling
VHS format.

Hopes faded

Dickman adds .that the com-
pany wants to manufacture
video cassette recorders. (VCRs)
eventually, beginning with final
assembly and .test and gradu-
ally increasing the level of
manufacture. (Thorn EMI in-
tends to make videorecordcrs at
its Newhaven plant shortly.)
Fidelity's original hopes lo
begin to make VCRs next year
have faded. “Maybe 1984,"
says- Dickman cautiously.

Fidelity is also trying to
reduce its dependence on the
UK market. 'At Ihe end of
March it won a remarkable
£2im order to supply both 14
and 20 inch colour TV sets to
France from its distributor
there. Distriraex. The ■ set
needed a substantial amount of
redesign to meet the require-
ments of the French SECAM
colour transmission system,

Fidelity was able to finance
this through an initial order
from the French company of
about £0.75m before the set was
designed, which paid for the
development, and enabled it to
make the commitments for the
components.

Although Fidelity remains
reasonably bullish about the
new relatively small audio busi-
ness — for instance citizen band
radio and the “ mid-ft" music
lower racking systems are see-
ing reasonable demand — its
future is c'carly tied to video
products, a sector which has
tripped many a company in the
past. Further diversification is
likely and Steve Dickman is
attracted by the liberalisation
of the telecommunications mar-
ket, For instance.

Business

courses

Texas Instruments Computers.

Perspective for Society and the
Welfare Slate, Management
Symposium. St Gallen, Switzer-
land. May 10-12. Fee:
SwFr 1,350. Details from ISC
International Management.
Waisenhausslrasse -14, 9001 St
Gallen. Postfach 706, Switzer-
land. Telephone: 071 22 (10 80.
Telex: 71271 MANAG CHV.

The Master Production Sche-
dule — who needs it anyway?
Harlow. Essex. June 29. Fee:
£73 (plus VAT) members, £90
(plus VAT) non-members of
the British Production . and
Inventory Control Society.
Details from BPICS, 3 The
Square, Sawbridge worth. Hert-
fordshire.

Enterprises and the Risks they
face in the 1980s, Paris. June
15-17. Fee: FFr 2,500 before
May 15. FFr 2.700 after May 15.
Details from International
Federation of Associations of
Business Economists. I rue
Jules Lcfebvrc. F-75009 Paris,
France.

In Muyl973, S-WXEF. (Society for
"Worldwide Interbank Financial
Telecommunications) was formed as a.
non-profit cooperative to protide a
computerised financial transaction
service for major bonks in Europe and
America.

Now the organisation serves over
9-*0 member banks in 27 countries.
Daily it handles 300.000 transactions
worldwide.

As S.W.I.FT. grew a major need was
identified, a more d istributed approach
to their netw orking system, calling for
a small computer which would satisfy
the requirements of member banks
with Iow r to medium,
volume traffic. .

Computers
■which would

independently office computer
networks. And provide economic
network access points for both foreign
and domestic branches.

The system had to be low cost,
highly reliable, easy-to-use, secure-, and
supported by service facilities around
the world.

S.W.LET. choseTcxas Instruments
computers.

Today the ST100 System, the
combination of aTexas Instruments

operate

• In branch offices located in such .
places as Guayaquil, Andorra and
Sydney.

And as part of complex
communications systems in michtv
international banking groups likeThc
Hongkong Bank. Midland Bank,
Manufacturers Hanover Trust, Banca
Conimerciale Italiano.

All counting onTexas Instruments.

If you're looking for the reliabil i ty
in computing that banks worldwide
dependon, look to Texas Instruments.

rdepboncQiristinelaoeieyon ■
Bedford (0234) 223722 or write
Texas Instruments lid., European
Digi tal Systems Division,

Man ton Lane, Bedford
MKA17PA.

Computers In . Personnel,
London. June 22-24. Fee: £250
(plus VAT), members of the
Institute of "Personnel Manage-
ment and Institute of Manpower
Studies subscribers. £270 (plus
VAT) non-members and non-
subscribers. Details from Insti-
tute or Personnel Management.
JPM House, Camp Road,
Wimbledon. London &WI9
4UW. .. .

STAYAT THE OFFICE

24 HOURS A DAY!

with a telephone answering machine

Texas Instruments

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. BOARDROOM BALCAPS :

FRIENDS OF THE EARTH?

We Little thought .that things would end
With Opcc seemmg tiJte.il friend;

Or that we'd nostalgic eyes
To times what prices, hit the skies.

Arid sing a eulogistic carol ■

For oH at forty. butiksnbarrcU

Butthen, at least.we stopped to think.
While- teetering upon theJrririk,

That maybe the re were ways to foil
The needless tyranny of oil ; .

Arid, other methods worth the learning
To keep the wheels of commerce turning.

We- even questioned was it worth
The raping of our Mother Earth
Or fighting never-ending duels
Like scavengers for fossil fuels.

And offering, -in restitution,

A ravaged world and air-paltiitUm.

And nature seemed prepared to prise
The scales from ourmyopic eyes
Arid show what energies, were there ,

In wind arid water,' sea and alt.

More rich, for those with eyes to see , . .
Than ail the bits of Arabty.

Wp thrilled to prospects of t he union
dj num and nature incqmirtunUm, . . .
Harcestmg tke uUnds and tides '

And energy tKis. sun provides.

With some more promising equation .
Between oitr-needs arid-conservation,

•' •-."•••

While even those whose vision ends
With forecasts of their dividends,

Were galvanised by leaping prices ■"

To seek alternative devices.

And place, upon a changing scene, . ' ■
Their money where their mouths had been.

But economics, with their crazy .'
Politics of to h oops-a-daisy.

Look as though they’ll stand instead ■
Our expectations on their head: -
And, toiih ike price of oildcclining.
Liquidate. our. silvcrJinmg. ■ ./'•

• - ■ •

If energy renaissance needs : ,

The: irnpetka of others’/ greeds.

Let us, on.our knees. implare -
The -prtvilege^Of paying irtoret "7
And rnay fliis masockisttc pleasure
Teach us truly what to treasurei -

BertleKamshottom

Next weak: Corporate Trends

BUSINESS PROBLEMS

BY OUR LEGAL STAFF

Interest on
unpaid rent

Could yon tell me if as a
landlord I am entitled to
charge interest on late pay-
ment i»f rent?.

A landlord is not : entitled to
charge interest on rent, unless
the lease expressly provides for
that to be done.

to escape corporation tax as an:
end in itself:' you ■ should:
compare after-tax yields, bear-
ing in mind 7 how -long thfcf
money is likely to be able to
remain invested; -

Forfeiture of
a lease

Avoidance
of tax

Can - you suggest an invest-
ment which eoutd he made by
a members' club which would
avoid any Corporation Tax
liability? At the present time
the dab reserves are
invested with -a building
society and there would
appear to be a liability to
Corporation Tax of 40 per
cent of the grossed up '
income less the tax deducted
of 36 per cent.

The simple answer is to buy
shares in a UK resident
company whose dividends are
exempt from tax under Section
239 of the 1970 Taxes Act
However, it is wrong to seek

I have a -properly -leased, to
a company. which has jmst gone
into liquidation. The lease is
the usual FBI type; and the
directors act as guarantors for ;
the terms of the lease, includ- .
lug rent Tbe lease declares
that' in. the event by the.
tenant of liquidation, bank-
ruptcy or .entering into any
arrangement with its creditors
or suffering any distress or
execution on- its goods the
landlord can re-enter the
premises and determine the
lease without prejudice to any
right of the landlord in respect
of any breach of the tenants*
covenants. Can you j please
answer (1) If tbe lease is
determined by the landlord
does this end. the liability of.
the guarantors or are they
Hable until such time, as the
premises are relet? (2) Can
the landlords prevent any.

asagnment by the liquidator
to another company or . in-
dividual? (The lease has the
usual proviso against un-
reasonable refusal by the land- -
lord). (3). Is' it necessary to
apply to the court for a posses-
. sion order tf the premises arc
not vacated- and the directors
-attempt to trade, from jhese-
premises, bribe, name' of an-
, other, company?

- i^if landlord forfeits the
lease 4he guarantors’ liability
ceases on termination of the
lease ;~but a guarantor may be
in a position to seek relief from

forfeiture.- "'•/•••

; 2— Thp; . landlord cannot; in
practice ‘ prevent', assignment to
a respectable, and responsible
assignee, since the liquidator
will cause the company to seek
relief from forfeiture for the
purpose of assigning -the Tease.
It is - better to call on the
■liquidator' to- elect whether to
disclaim- the lease or pot/

3— Alt would be necessary to
apply to the' ’court in the cir-
cumstances., which you. describe.

jllSi

•"Mu '

No legal . restfoasibiliiy. can be
accepted by - the Finandat Times
for the answers given in these
columns. All - inquiries will be
answered by post as soon -as
passible. 1

1981 annual
accounts

di.Ri

di

vje^,i .,i mo’*s r-ws

£2 ■

irenze

The 1981 accounts outline the further expansion of activities
of our bank in all its operational areas, as indeed it is shown by
the following figures:

Visual a

■ • -

Total assets

(Including contra accounts’)

tir.

11.55“ Billion

Customers' deposits

Lit.

3.240 BiHIon

Loans and advances

'.' Lit.

.1,400 Billion '

Financial investments

Lit.

2.021 Billion

Capital funds

Lit.

S4 Billion

Net profits for the year

Lit.

4,102 Million;

r _

. In the international department in- particular, foreign currencj’
transactions increased by 23.80 %■

■jr . • • ■

The results base been achieved also through the vital support
of our Representative Offices in London, Frankfurt, New York and Paris,
whose services have been appreciated by Italian and foreign -operators.

« ter. ... V
... ■ ■

dFfepamvo
di Firenze ■

General Management and Florence Main-Office;
Via Bufalini; 4-6 -'50122 Florence.

U.K. Representative Office:

Wax Chandlers Hail. Gresham Street. LONDON EC2V 7AT>
Phone (O'l ) 60.6S:2^-o-~ ■ Telex S$6*J0 FIGETV G
Cable Address F1GEVLON LONDON EC:. .

.-I-:?: •

y! ::

■s**

Vf

From Tuesday Uth May
until Friday 21st May 9am to
5pm. Asprey are exhibiting a
collection oi small antiques
in their Fenchurch Street
showrooms .

The collection features
the finest workmanship
in silver, glass and
docks and demon-
strates Asprey s

traditional expertise
lofAntiou

in the field of Antiques

. . Salver -

George IT Star Salvet wirh, .
sl^S>aidyacrft brada. crir

grj'jed-u-Tijt cnnr pq w . ' M y 1 Coat
-of Arms, 333ciis. London 174-
byEdft-ard Waksfav . ' , .

CarriageGock . .' .
french brjss grandcscnddie
UBTiagccbck-n-Ah alarm. Hcrta
jacotcISfi). '

LovingfCup '..---j;. x '
Amhierteung Geor^n glass

C-tSXL • '.v t-.' .

'in :

153 FenchurdiStrMtUKiJonKLJMtiBB.
' ' Tdbpiioiie0ito2fi2ifip, /'

W-

£yJ£<

V-i.; * "

V-";*

a.

wiyjte

hm

’. "in

.'!.y7-U:fr E •-

I

■‘Cfc.

19 1982

THE ARTS

j£fi

Festival Hall

Dominion

At the Boar’s Head

j

'““—r} I

>3. H

m 5

Holst’s Shakespeare opera
compresses into one act the
Falstaff scenes from Henry IV
with two of the Sonnets and
some extra verse from other
sources. The music, is a medley
or mosaic of traditional English
tunes from Playford. Cecil
Sharp etc and some of Holst’s
own invention. That sounds
Englishry of the folksiest hue,
but At the Boar’s Head doesn’t
come out like that at all. What
the Royal Liverpool Philhar-
monic’s welcome concert per-
formance on .Monday revealed
was a remarkable consistency
of idiom with ultra-profes-
sional craftsmanship, the speed
of true comedy and admirably
transparent orchestration.

No one in his senses would
try during a performance to
guess which tunes are which.
The melodies or snips of them
slip in and out often combined
in ingenious -but occasionally
self-defeating counterpoint with
overlapping words. Because
most of the word-setting is so'
good, with the uninhibited East-
cheap chatter and abuse coming
to vivid life on the singing
voices, the contrapuntal over-
indulgence Is a pity. Typical of
Holst to sin in such a way, when
a Puccini would have held the
action (to some effect) for a
point of lyrical repose. Holst
contents himself with tiny
gleams of lyricism, and very
tantalising they are.

Puccini is evoked because
Holsts pace* rhythmic verve

Elizabeth Hall.. ...

and harmonic pungency (espe-
cially- his use of parallel
triads) put one in mind of
Gianni Schicchi, at least of a
Schicchi written wife a bare-
ness not- unworthy of Mussorg-.
sky at his most truthful. Hofei’s,
method of working here to some
degree resembles Falla’s - in
Master Peter’s Puppet Show
written, a few years earlier,
though Hie alchemy is not so
complete and there is nothing
quite so original or successful
as FaUa’s treatment of the
Boy’s music. Yet the Boar's
Head is clearly riot a dead
letter. A first-rale staging — at
the Snape Mailings, surely? — is'
urgently indicated.

The' RLPO’s performance
under David Atherton was
sharp and assured, with John
Tomlinson as qirick-tongoed as
he was sonorous as Falstaff,
Elise Ross a surprising but not
unintelligent choice for Hostess
Quickly and Felicity Palmer a
Cockney peach of a Doll Tear-
sheet Philip Lahgridge was
Prince Hal. excellent in bis
Sonnets, not always strongly
enough, projected in ensembles.

After the interval Mr Ather-
ton tore into The Planets with
such vigour that some of the
timely ferocity of "Mars”
spilled . over into less appro-,
priate regions. But there were
compensations such as the dis-
tant voices at the end of
“Neptune,” fis exact as they
were remote.

RONALD CRICHTON

Kid Creole

by MOIRA PETTY

mm

Television

Cherie Lungfai and Midtael Bryant In 4 Unde Vanya,’ which opened at the Lyttelton Theatre last night

No flair in the future

by CHRIS DUNKLEY

Gustav Leonhardt

by ANDREW CLEMENTS .

The Dutch fcaigskfaonlist and
organist Gustav Leonhardt
made his British debut in a
concert in Oxford as part of the
first English Bach Festival in
1963. His return on Monday
for the festival’s 20th. season
was Wellcome: his playing has
a stylishness and urbanity
that demand dose attention.
His programme consisted, as
(Hie might expect; for such an.
occasion, entirely of Badi,
though it was a selection of an
entirely unhackneyed kind.

Johann Sebastian shared the
evening whh his favourite son
Wilhelm Friedemamz, . six of
whose polonaises Mr Leonhardt
included; predominantly slow,
reflective pieces, quite unlike
the heroic statements which the
following century would make
out of the same <faoce model.
Mr Leonhardt dearly relished
their delicate tracery and often
intricate chromaticisms, though
bis desire for the more
succulent ntoatos did some*
times take the mefodfLe line
along indecisive- tracks.

The same delicate patterning

of the figuration was a charac-
teristic of his performance of
the elder Bach also. He made
out a strong case for the E fiat
Proeludmm, Fuga e EUcgro to
be given as a harpsichord work,
though contemporary evidence
suggests it may have been
intended for lute, even, if his
tempo for the fugue was too
measured. The D minor Toccato
and E minor Suite “attfs Lauten
Werck” similarly counterpointed
sedate tempi and most careful
registrations..

But the lack of momentum in
Mr LeonhardCs playing was
most noticeable in his own trans-
scriptum (into G minor) of the
D minor violin partita^ The
arrangement is the epitome of
discretion, adding the minimum
of bass support here, a chordal
thickening there, and generally
resisting the temptation to pro-
vide a running left-hand part of
its own. But the lack of physical
attack made the performance
seem a. pale image of the
original; some sharper rhythmic
profiles might have worked
wonders: -

Visual art competition

Sainsbury's is to sponsor a
new enterprise in the visual
arts. Any work of art suitable
for reproduction by photo-
lithographic methods can be
entered for “ Images for Today.”
The eight winners will be repro-
duced, with the artist receiving
a minimum of £1,000 in advance
royalties, plus further rewards
if the print sells over 1,000
copies.

The successful prints will be
sold for under £3 in unlimited
editions, end there is a chance
that they, will be marketed
through Sainsbury’s branches.
They wiM certainly be available
in a touring show of up to a
hundred best entries which will
open ait the Graves Art Gallery
Sheffield on December 5 and
then tour major art galleries in
the UK.

Sainsbury's is putting up
£17,800 in prize money and the
judges include Quentin Blake,
Terry Frost and Care! Weight.

The aim Is to provide imagina-
tive contemporary ait which
will be available to the public
at fow cost The hope is that a
wide cross section of artists —
from . students to established
artists — will . submit entries
wiuoh should be oit paper -and
not exceeding toe overall dimen-
sions of 20 m’ by 30 in. Full
details of the competition can.
be obtained from Kaflaway Ltd,
2, Portland Road, Holland P-ark,
London, Wll 4LA-
“Images for Today” com-
pletes- Sainsbury's three-year
Regional Ait Sponsorship Pro-
gramme. -which is costing the
company £500,000. The other
arts covered are three new pro-
ductions for Kent Opera; sup-
port for the Sadler’s Welis Royal
Ballet tour; a lour by the Polka-
Children's theatre; . -and . the
Sainsbury’s Festival of Choirs,
which took place this month at
Che Royal Albert Hall.

ANTON Y TOORNCROFT

Two BBC 1 series are cur-
rently proving to anyone with
doubts that umbrella titles can-
not bring consistency to ill-
assorted material. On the
contrary, if you launch an um-
brella series with a couple of
stinkers you run the risk of
putting the viewer off anything
subsequently appearing under
the same title; however much
| better or different the later
I material may actually be. P lay
For -Tomorrow has been a near-
disastrous failure, yet since the
men responsible for it, Neil
Zeiger and Chris Parr, pre-
, viously produced two outstand-
ingly good plays. Too Late To
Talk To Billy and My Dear
Palestrina, one is forced to
, doubt the - umbrella system
rather than their abilities.

'When you think about it. the
idea - of asking six writers to .
create plays on one theme is
highly dangerous: you deny the
writer his normal individual
freedom and box -him into a
collective and continuing series
of productions, yet deprive him
of all the cumulative advantages
accruing to writers on real
serials, even soap operas, of
well-established characters and
locales already known to a dedi-
cated audience.

Despite all that, one might
have hoped that Play Foti -To-
morrow would work because
the theme of an imagined
future sounds virtually -limit-
less. But futurist fiction on
screen has to be mounted either
very expensively as with - 2002
and Star Wars, or with tremen-
dous-imaginative flair as with
Alphaville and Hitch Hiker's
Guide To The Galaxy. “Plays
For Tomorrow ” look as though
they were done on the; : cheap
(everything I have seen has
been studio bound) and instead
of the writing being imagina-
tive, for too much has been
shamelessly -*■ perhaps because
unconsciously — derivative. It
must be hard to inspire directors,
and designers with such familiar
stuff.

I wondered whether it was
rose-tinted hindsight which made
me feel that Faber’s futurist
short story collections from the
sixties were far more original
than ' anything in " Pity. For
Tomorrow." but a quick browse
through Best SF One and Two
has proved my memory correct.

The other umbrella title is
QED which has looked at
electricity In fish and offered
yet another programme about
Richard Noble failing to break
the land speed record in his jet

car. The whole thing brings to
mind a copy of Boys’ Own Paper
thrown together while the
editor has a holiday.

★

It isn’t that there is no good
dr ama around at present, only
that there is no one slot
producing it consistently, so
you have to hunt for it. BBC 2’s
“ Playhouse ” produced an
unexpected ace in Desmond
Lowden’s Jake's End. The
surprise was that anything fresh
could be coaxed from a subject
as hackneyed as violent crime
pictured in the "fashionable
genre of ultra-realism. But
watching tills film (tellingly
directed by Jim O’Brien on
unf amiliar Southampton loca-
tions) the realisation grew that
practically aH . the other
thousands of television crime
dramas have been aboyt the
police. Here was a crime drama
about criminals, . It did ' not
lionise the central character,
Jake, first lieutenant of Mr Big,
■nor call for sympathy; the
criminal fraternity were shown
convincingly as a pretty nasty
lot But they were also riiown
as an integral part of society.

Jake drank in the sort of bars
that Z-Cars and The Sweeney
have shown us, and hung around
the familiar- dingy garages. But
he also went shopping and
bickered withhis wife, favoured
G-PIan furniture and sought his
lost youth in the fattening arms
of an old flame, seduced to the
strains of a 78 pop record. Ordy
G. F. Newman’s Law And Order
has previously come anywhere
near to showing as convincingly
as tins play that however
immoral and disgusting they
may be, bank robbers— as much
as Nazi torturers— are. like it or
not still human beings.

Another rare treasure was
Alma Cullen's Northern Lights
from Scottish TV. It seemed at
first as though it might be just
a sentimental little lyric about a
young university student at the
Edinburgh Festival falling in
love with his attractive middle-
aged landlady. But it was turned
into an unusual treat by the
author’s wickedly accurate side-
swipes at middle class Scottish
society, and by enthusiastic act-
ing, especially from Annette
Crosbie as an Edinburgh matron
whose life is a tortured cata-
logue of domestic minutiae.

★

What programme consists of
a competition organised by tele-
vision with heats, semi-finals
and finals involving a narrative
thrust and suspense closely akin
to that of serial drama; the

NATIONAL THEATRE S 92B 22S2-

OL1VVCR (oocn cugo) Ton't 7.1S Tonw
2.00 <tow Artca m«j A 7.1S GUYS AND
DOLLS. iTHE ORESTEJA— Last Per**'
May. 2 7. 29. 31. June 23. 24J.
LYTTELTON in 'orient urn stage i Toot
. Tomor 7.45 UNCLE VANYA bv Anton
Chctrtiew. ' '

LOTTES LOE i small sudltorhim — low prlc*
tfctsl Ton't Tom or 7.30 SUMMER new
3a y bv Edward Bond, ii.ru Perfs TRUE
WEST May 2 3 A 31 at 7.30 May 29 a*
2.30 & 7.30.) _

Restaurant 929 2033. Credit card bks*
928 5903.

NT afcwa at HER MAJESTY'S.

choosing of a here or heroine;
and the competitive element
screened in controlled bursts in-
terspersed with interviews of
the competitors by some famous
“ personality ”? The answer
these days seems to be every
other programme in the
schedules. In April and May
alone I have seen the format
used for;

Exploration (BBS’s Mich Burke
Award)

Classical Music (BBC l’s Young
■ Musician of the Year and
BBC 2*s International Young
Musician of the Year).
Television Itself. (ITV s TV
Times Top JO Awards)
General Knowledge (BBC l’s
Mastermind Champions)
Fishing (BBC 2’s Hooked!)

Pop Music (BBC l’s Eurovision
Song Contest)

Snooker (BBC 2*s World Profes-
sional Championships)
and tonight ITV will be employ-
ing the same formula yet again
in The 1982 British Beauty
Championships. This is only
counting the bigger and more
“serious" contests, of course. If
you were to include the smaller
and sillier ones ( Sale of the
Century. Darts, Gambit and' so
on) I have a dreadful feeling
that the only programmes left
off the list would be Open Uni-
versity courses and .Falklands
coverage. •

With Wogan BBC1 may be
onto something oddly original
and, in television^ own terms,
very big. The talk has been
of Terry Wogan replacing
Michael Parkinson as a chat
show host, but if Wogan can
just keep going- as he is, with-
out sinking into the -book and
Sim PR racket, we could end up
with something interestingly
different.. •

Parkinson was an entirely
conventional chat host and al-
though it took years for him to
reach the point where he could
relax Ins grip on his clipboard
enough to stop. -:his knuckles
whitening, his favoured method
always remained the predictable
question Tolled * under-arm
across the studio Boor to some
revered guest. •

Wogan on the other hand has
already proved in the brief
run' of his show that he can
chat .without any crib. He has
an endless supply of Smalltalk.
Sometimes his guest has no
chance to start dealing wi to one
lot before Wogan is pouring the
next delivery oveT his head like
treacle. You feel if given' a
clipboard- Wogan might fan
himself .with it- • • -

Before long, however, most of
his guests discover that mixed
into this smooth sweetness are

SADLER’S WELLS THEATRE E Cl . GC 270
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Artists In a Royal Gala.

Australian Da nce Theatre June 15-29.
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AMPLE FREE PARKING aft 6.50 Dm.

Kid Creole is the stage per-
sona adopted . by Haitian-horn
August Darnell, a musical mag-
pie who filches from every
available source and sees life
as a rehearsal for the most
highly-coloured kind of Holly-
wood B picture. His 14 piece
pop show, which splices
calypso, funk and Reggae
rhythm with disco dance, music,
whipping .ftp a brash cosmopoli-
tan cockiati, is such an exuber-
antly theatrical event that the
influential New York director
Joseph Papp, producer of the
rock “Pirates of Penzance.”
wants to work with Daniell on
- a stage musical, .

The Kid struts street-wise and
slickly spisvish through, a pro-
duction which comes on like a
movie scenario: Runyonesque
pastiche meeting the- Keystone
Cops. His fall guy and side kick
Is a diminutive percussionist and
rubber-legged acrobat “Sugar
Coated” Andy Hernandez, a
mobster in -miniature, in zoot
suit and hat Spats and squalls
break out between the two; egos
are defined and crushed and
when Hernandez comes off worse
he lunges dramatically across

Berlin theatre

the stage expressing his angst
through his silently gaping
mouth.

Chivvying and chiding the
principals is the backing trio.
The Coconuts, three raadjfloss
babes who shimmy and shaka in
a riveting non-stop series of
dance sequences. They wear
green seouinned bits of nothing,
tulle fluttering around their
waists to reveal bodies working
in sharp synchronisation like
marionettes.

Darnell is literate and know-
ing. Disco politics are dissemi-
nated; the pick-up provides an
opportunity for a humorous
essay on table manners. In all
of this he is more New York
than a bagel, but musically he
Ls deliberately eclectic, allowing
the rich loose style of Cab
Calloway to swing through dance
tunes or a rhumba to break
through a ska number.

In a boldly commercial mood
his newest material is rooted
firmly on the disco floor but as
he slips more easily into pop s
mainstream there are signs that
he may soon see all this as
merely a diversion from Broad-
way or Hollywood.

The art of Comedy

DREAMER tv Rev HUM

G TILL JAN

ROYAL COURT THEATRE UPSTAIRS 750
2SS4. BAZAAR tr RUMMAGE 97 Su»
Townsend, tifl* 7.S0.

all sorts of hard and sharp
little bits and pieces. On the
opening show Bruce Forsyth
warned him “You can’t expect
your life to be one big peak —
you’ll learn, ” to which quick as
a flash, Wogan replied witii one
of those huge smiles “What a
mice old man. ” Without losing
a jot of the smile or a tittle of
the blarney he then proceeded
to make a donkey out of super-
agent Mark MacCormack's right-
hand-man who is responsible
for all -the Pope John brio-h-
brac.

The following week Wogan
made David Frost look pretty
silly too. But here’s his true
genius: Frost seemed quite
genuinely to enjoy the process
almost as much as we did- When
your interlocutor delivers bis
barbs as charmingly as Wogan
does the prey seems willing to
jump at the bait. How fascinat-
ing If in place of the familiar
sycophancy we are to have a
little scurrility. The British
chat show could be about to
come of age.

*

If artists stopped painting
pictures in the summer and
directors stopped making films
and orchestras stopped playing
and writers stopped writing one
could understand the decision
to take Omnibus off the air.
Since they don’t one can only
wonder whether the BBC’s
weird reasoning will shortly
lead to a summer break for the
Nine O’Cloch News.

Incidentally ' while- it is
heartening to have .an arts
programme finally willing to go
outside: the boundaries .of fine
art and interest itself in those
artefacts which surround all of
us all the time— for instance,
in our buildings — it is depress-
ing to find that when they do
so they, fall straight Into the
familiar pattern of the whining
social documentary.

There are quite enough series
already where we can hear
socialist diatribes being-directed
with much justice against com-
mercial developers, without
Omnibus sending Barry Norman
around Thames-bank with Bob
Hoskins to make naive political
points. (What is a modem com-
mercial development? "Sterili-
sation of the Thames by greed.”
but a Victorian commercial
development which cuts off the
river just as * effectively?
“ Smashing aren’t they, these
old warehouses.”) Of course
Omnibus should cover Thames-
side but why Hot — uniquely
among ail television’s environ-
ment programmes— from an
aesthetic point of view.

F.T. CROSSWORD
PUZZLE No. 4,875

ACROSS

1 Fruit the Cockney takes to
bed? (6, 3. 5)

10 Money we hear and a place
• to hide it (5)

11 Mary admits it all in the
way of conjugal bliss (9)

12 Socialist’s receiver is brittle
when very hot (7)

13 Mammal from the east is
caustic (7)

14 Cane and smart (5)

16 Drink vendor should make a
piSe (9)

18 Swabian dance given by
.German in Paris (9)

20 Quantity of money Fm
returning for a mocking-bird
(5)

22 A fly I caught could be
related (7)

25 Roughly cut a pack of cards
and played first (7)

27- Debater turns up in remote
surroundings (9)

28 Pig got -in back to front (5)

29 Scottish breathers make a
glowing display (8, 6)

DOWN

2 Cram a bit, and soldiers
don't like it (4-5)

,3 Subject in a Belgian city (5)
4 The devil about to spoil one
charitable person (9)

$ A fish to cherish (5)

6 FueL producer let me pour
this mixture (9)

7 A song that’s awry In Scot-
land (5)

8 Unscrupulous practitioner is
to toss the rest around (7)

9 Genus of fish making a mark
on as (6)

Somewhere along the line in
its development over the past
decade into the most respected
theatre on the German land-
scape, the Schaublihne
Ensemble under Peter Stein
recognised that- as a private
theatre, a combination of
tragedy and comedy would
bode well for the future. That
formula could be reduced even
further to the Greek tragedy
and the. modern- farce. The
Oresteia of Aeschylus, for
example, is vintage Schau-
buhne: an annotated translation
of the text by Stein himself, a
studied production amounting
to a “ seminar ” in Greek stage-
craft, and a clear reference to
the human condition of the
20th century.

If the avid theatregoer on a
visit to Berlin has not yet
caught his landmark Schau-
buhne production since its
premiere in autumn 1980, then
he should do so without hesita-
tion — indeed, it’s well worth-
while returning for a second
round of spaced evenings or
the full seven hours on certain
weekends. But it’s no longer
at the Hallescher Ufer location
— the Schaubiihne is now on.
Lehniner-Platz, in the heart
of the city on the
KurfUrstehdamm.

The new play on the schedule
is Eduardo de Filippo's The
Art of Comedy. Those who
recall the Peter Stein produc-
tion of Eugene Labiche's The
Piggy Bank at the Schaubiihne
m 1973, a long-running hit, can
anticipate the singular aspects
Of this Neapolitan farce written
and performed ’in 1964/65 at
the height of the playwright’s
fame, when tributes and awards
were being showered upon him.
For just- as The Piggy Bank
drew freely upon film versions
by Rene Clair of Labiche's
comedies for inspirational
effect, so too Fred Bemdt
directed toe Ensemble with an

eye on the craft of folk-theatre
as practised for centuries in toe
provinces of Italy.

Karl Ernst Herrmann's doll- ;
house stage can be found in .
graphic miniatures on the j
poster-programme, the contents .i
of which highlight de Filippovs ‘
-career and the founding of his.. ,
own Teairo Umoristico I De
Filippo in 1931. It’s also signiii- ' L
cant that the company chose •
a play that serves to analyse ■[
the magic of the modem farce
— there^. as many clues here •
as 4o be found in Ben Traver's .
Vale of Laughter. ■

The farce is always in good ..
hands among certain veteran j
actors in the Ensembles; Werner
Reham. Elke Petri, Wolf RedL ; ;
Reham is outstanding as the- r >
civil servant newly banned to j
toe provinces; ‘ Petri is also a’ •
stitch as a teacher with every |
hang-up imaginable; and Redl ■>
plays his role of a wandering :
theatre director to the hilt. ■ '
The twist in this farce occurs • -
early on: a list of the appoint- \
ments on the day’s schedule
falls accidentally into the hands i
of the theatre director, who may, }
or may not. be using the infer- >
mation to send his troupe into '
His Excellency’s Presence one--;
at a time to get the last laugh.

The trick is to detect real- .-
misery from sham tomfoolery— i
to the point that the visits of ^
the town's lawyer, priest,
'teacher, and other distraught '
personages cascade into a chok-T;
ing death-act on stage-centre,
There are other laughs in toe^
course of the evening toot Cer-«;
tain lines uttered by the civil-'
servant apply equally to - the
bane of Beamtemum . in . the:; 1
Bnndesrepublik Deutschland too 2-
— well as they should, to qualify;;

. as modern farce at all The- '
audience rocked with laughter^
at the verbal puns, more so than-:
even the minutely. timed visual^
gags. - . ■‘■T.

RONALD HOLLOWAY^

High prices for Ming

Sotheby's sold in Hong Kong
yesterday the Frederick Knight
collection of 43 lots of Chinese •
ceramics and lacquer for
10.319.100 Hong Kong dollars'
(£990,307), with a modest 4 per
cent bought in. The saleroom is
now quoting aggregate prices, to..,
which must be added VAT bn
the buyers’ premium element fa
small addition).

A Ming blue and white rose-
water sprinkler sold for £126.679
to Chao, a local dealer, while
an early Ming blue and white

bowl realised £103,306. An early;*
blue ground blue and white-,
dish of the Yuan dynasty went!:
. for £95,810 and a blue and whitei-
leys -jar for - £52,783.- -

In the I and on English . pot-£
tery and porcelain sale an elab-^

. -orate" Staffordshire group of the.’.
Politos -menagerie, probably by,
Obadiah, SherratL sold fof£
£9,020. .Jen .times the forecast.^
The menagerie visited Wolver-;'
hampton in ISOS. .while Sherratt.'
was in Burslem. only 30 miles;
away.

1 2 3 4 *

re |KSi 6 1 Vn

122 I 123

15 Dwell on reality or accusa-
tion to plain words (4-5)

17 lake a short narrative from
a chatty relation (9)

18 Fruit, not very heavy, but
in toe glare of publicity (9)

19 A wicked fellow in Apollyon
(7)

21 Badly seated but composed

( 6 ):

23 Flair right for a prying
person (5)

24 Church melody in bishop's
office (d)

26 Caught fish to hold on to (5)

Solution to Puzzle No. 4,874

amaasGr aaannamn
a* a- a a
□aasaamu^Qiinnaiaa

anma^HEannamgisH

Or- Efc-fSitoia -* ia .*<#• * a

annama Qaanuna -

-s

■^aaaaaaHunnaaHa
a * a*.»; ®- □
naiaaiiaHacjfg; :nrnna
' a t-nr □

aomanna gamasan
a 3 on q o □ b
aaaBanga Baanran

20

• Fin aritial Times We^esda>: Ma>;i9 1982 "

HNAM3ALT1MES

BRACKEN HOUSE,. CANNON STREET. LONDON EC4P 4SY
'Telegrams: Rnantirno, London PS4.Telex: 8954871
Telephone: 01-248 8000

Wednesday May 19 19S2

Upheaval in
the EEC

THE EUROPEAN roMMLWIY is now at a major
turning point. Ely a majority of seven to three, the
member states have pushed through this year’s farm
price increases, and by over-riding Britaiivs imagined
veto have deprived it of the leverage by which it hoped
to secure an acceptable rebate for its excessive contribu-
tions to the Community budget Potentially the
Community is now in its most serious political and
constitutional crisis since 1966. It may be tempting for
Mrs Thatcher to look for the strongest and most immedi-
ate weapons of retaliation she can lay her hands on.
But prudence, the competing pressures of the FalHands
crisis, and the long-term interests both of Britain and of
the Community at large, argue for a longer-term strategy.
If Britain is to turn a potential into a real crisis, let it be
at a more appropriate moment. .

There is nothing wrong with majority voting, as
such- On the contrary, the Treaty of Rome expressly
provides for it not in order that individual countries
should regularly be outvoted, but in order to provide an
incentive for compromise. In the greater diversity of
interests of a Community of 10 countries, majority voting
is even more desirable. It was the French government
under General de Gaulle which, in the 1965-66 crisis,
demanded an end to majority voting; and while so-called
Luxembourg Agreement was not an agreement, but
rather a formal statement of a continuing disagreement
on tins issue, the Community was so bruised by the
experience that in practice majority voting was aban-
doned on all but the most nugatory questions. This
French assault on the Treaty of Rome did more than 1
anything else to ensure the stagnation which has afflicted
the Community ever since.

Insensitive approach

On the most general grounds, therefore, the revival
of majority voting could only be welcomed if it £iad taken
place as a result of a measured decision to revise if not
abolish the Luxembourg Agreement in. principle, and as
an expression of what in more idealistic days used to be
called the Community spirit * This is not what has
occurred. There has been no consensus on the legitimacy
of majority voting— of its formal legality there can be
little doubt — and the vote has been pushed through as a
coup de force against the wishes of the British Govern-
ment. In these circumstances it amounts to an act of
brutality which risks provoking the most violent and
most destructive reactions.

The British people, and successive British govern-
ments, must bear some of the blame that things have
come to such a pass. Neither Westminster nor Whitehall
thinks naturally in European terms and while Lend
Carrington made the most of the foreign policy oppor-
tunities of Community co-operation, Mrs Thatcher’s
approach to more mundane issues, such as the British
share of the budget, has often been insensitive and
counter-productive.

Nevertheless, in terms of natural justice, the British
Government has less to apologise for in the current crisis
than its seven partners, who may be said to have welshed
on an unmistakable bargain. When the Commission
produced its long-awaited mandate package just under a
year ago, it was recognised on all sides that the
component elements of the programme were organically
linked together: farm price increases together with steps
to reform the common agricultural policy and curb sur-
plus production, a better balance between Community
spending on agriculture and on other headings and a
settlement of the dispute over Britain’s disproportionate
share of the costs of the farm policy. If unsaleable farm
surpluses were contained, or better still reduced, the
costs of the farm policy would go down; if there were a
substantial reorientation of the budget towards the social
and regional funds there would be a correspondingly
smaller need for direct budgetary compensations to the
UK.

Political nonsense

Yet in practice, what has happened? The farm minis-
ters have swept aside the Commission’s half-hearted pro-
posals for controlling surplus production; there has been
no substantial re-orientation of the spending priorities of
the budget, and the farm ministers have now voted price
increases which, though they may not be unreasonable
against the background of several years of falling real
agricultural incomes, can only be counted on to increase
the surpluses, and thus the wasteful costs, for which the
common agricultural policy is responsible. Through
public protests and demonstrations, the continental farm-
ing lobby has got its way; the only chapter which remains
unresolved is the problem of Britain’s budgetary
contributions.

If Mrs Thatcher’s approach to this problem has too
often been hectoring, that of her continental counter-
parts has too often been smug, self-righteous and short-
sighted. It is true that Britain is seeking changes in the
budgetary rules; but.it is stupid to argue that rules
drawn up before Britain joined can have a sacrosanct
validity which overrides the purpose for which the
Community was created. The idea that these rules should
bring about a net transfer of resources from a relatively
poor country to relatively rich countries is politics^ and
economic nonsense. Will the farming countries also,
insist that Portugal makes a net transfer when it joins?

Cool thinking

Some have argued that Britai should have sharply
reduced its budgetary demands, in recognition of the
solidarity shown by the other member states over the
Falklands crisis. That solidarity was important and
valuable. But if Community support on a political issue
of principle, whose repercussions are still alarmingly
unpredictable, is up for sale, it is not worth very much.
Tn any case, the alacrity with which Britain’s partners
initially supported economic sanctions against Argentina
was being publicly regretted by some member states
within a fortnight, and Sunday night’s extension of these
sanctions tor a mere week may suggest to Argentina
that practical support for Britain is slipping- away.

Nevertheless, this is a time for cool thinking, and
not for hasty over-reaction. It would be better, on the
one hand, calmly to pursue the demand for a long-term

arrangement over the budget, to be negotiated by the
end of the year; and on the other to make it absolutely
dear that, since yesterday’s majority vote, Britain would
feel entitled to take unilateral action to ensure a satis-
factory outcome— by withholding payments— if the other
member states are not prepared to negotiate it.

VIDEODISCS

By Guy de Jonquieres

B RITAIN Is about to become
the European testing
ground for one of the big-
gest commercial gambles ever
taken by the - consumer elec-
tronics industry. Next week
Philips, the large Dutch group,
will launch hi London the first
videodisc home entertainment
systems to go on sale on tins
side of the Atlantic.

Philips and at s major inter-
national competitors will be
watching the response of British
consumers very closely. For in
spite of huge investments in
developing -the technology, at is
far from dear whether video-
disc systems win attract a mass
market, as their manufacturers
hope, or wED tarn out, as others '
in the industry believe, to be. a
hunri&tei&ing flop..

Videodisc systems are, in
many respects, the audio-visual
equivalent of the' gramophone.
They are designed to play back
moving pictures and sound on a
television set. But unlike in-
creasingly popular videocassette
recorders (VCRs), they can only
reproduce pre-recorded material
and cannot be used to record
broadcast television programmes .
off-air.

Enthusiasts claim that they
more than compensate for this
in other ways. Picture quality
is superior to VCRs and stereo
sound is available. Videodisc
systems also boast convenient
controls, which make it pos-
sible to freeze a frame and
select a particular track quickly.
Some models have “ inter-
active” two-way comnranka-
tdons features which enable
Ihem to respond to a variety,
of instructions from users.’
These suit them to applications
hike educational programmes
and video games.

Manufacturers of
videodisc systems-^ the
audio-visual equivalent
of the gramophone— .
hope that they will equal
the success of video-
cassette recorders as a
popular home entertain-'.;
ment product Several
hundred million pounds
have been spent
developing three rival
systems, one of which,
the Philips LaserVision,
pictured right, will be
launched in London next
week. But videodisc
sales in the U.S. over the
past two years have been
disappointing and it is
far from certain that a
mass market will
develop soon.

Making die discs
proved harder than
IBM expected

Mure than £200m has. been
Spent on developing the Ph$&ps

LaserVision " system, which
waH sen in the UK fur £450-
£B00. At least as much again
has been invested in two other,
competing, systems pioneered
by Victor Company of Japan
( JVC) and RCA, the diversified
American electronics, broad-
casting mid entertainment
group.

Videodiscs first appeared on
the U.S. market more than two
years ago. But in spite of inten-
sive promotion, the results so
far have been discouraging:
RCA, whidi boldly predicted
sales of 200,000 players . last
year, aided tip selling orriy
105,000. Last February, it
slashed their fist price to $350
from $500 in a bid to stimulate
demand.

Pbiteps, whose machine sells
for $600 will not disclose exact
figures. Mir John Messgrschmitt,
its US. vice-president in charge
of videodiscs, says that -toy the
end of last year 75.000 players
bad been sold by Philips and
Pioneer of Japan, which makes
LaserVision under licence. But
a good number of them is
believed to- have been bought
by businesses, for professional
use, not by consumers.

Cracking the videodisc
business has defied even Inter-
national Business Machines, the
world's biggest computer sup-
plier. Three years ago it set
up a joint venture, Discovuaon
Associates, with the American
entertainment and film com-
pany, MCA, to exploit the tech-
nology. . But making the discs
proved harder than expected.
After investing an estimated
$250m in the venture, they sold
out to Pioneer last February.

Pioneer's own sales in Japan
have fallen well below its target
of 4,000 players a month. Other
Japanese manu f acturers which
have made sizeable commit:
ments to videodiscs are having
second thoughts. Both JVC and
Matsushita Electrical its parent,
have postponed indefinitely
plans to start selling systems on
their home market

They blame weak demand for
consumer electronics products.
Some in the industry suspect
that Japanese companies are
worried that videodiscs will pro-
vide d amaging competition for
VCR sales, which are showing
signs of faltering after several
years of vigorous growth.

Sony, one of .Japan's most
successful manufacturers, is
openly sceptical about whether
videodiscs will ever catch on as
popular consumer products.
Last year, it expressed its doubts
in a series of advertisements In
U.S. newspapers. On one page,
under the headline The Tale of
the Videotape,” was a mass of
densely-packed text. The oppo-
site page, headlined “The Story
of the Videodisc” was almost
entirely blank.

But Sony is selling in the C.S.
a sophisticated and high-priced
videodisc system designed for
specialised professional uses.

None the less, Thom' EMI
which already sells and rents
VCRs made by JVC in Japan,
says that it aims to start dis-
tributing JVC's VHD videodisc
system in Britain next autumn.
The UK launch of the VHD
system has already been twice
delayed. -

Philips still believes that
videodiscs win prove a success
but has set only cautious
targets for their British debut,
which will be backed by a £2m
promotion campaign. Sales will
be limited initially to the

London area and will uo.t be
expanded nationwide for at
least a year.

“Zt will be a slow bum which
could catch fire at any moment,
once consumers understand
what the systems, offer," says
Mr Jimmy Dunkley, head of
Philips’ UK videodisc opera-
tions. He hopes that Britain's
extensive television rental
industry will provide an impor-
tant outlet. He expects at least
a third of Philips players to be
rented, -for -about £16 to jElS a
month. -

The players will be imported
from Belgium and tEejiiscs will
be pressed at a £10m plant in
Blackburn, Lancs. Quality
control problems at that plant
have already caused substantial
delays in tie LaserVision
launch, but production is now
said to have reached satisfactory
levels.

The initial disc catalogue will
consist of about 70 titles, -Most
will be feature films, including
recent releases like Chariots
of Fire and old favourites like
The Sound of Music, as well as
classical- and pop music, sports
and documentary programmes.

Each disc will contain.- a . two-,
hour programme and wH ' sell
for about £18. -

The recent mood of anti-
climax which has settled over
the videodisc market may be
due partly.- to the extremely
optimistic sales targets set, in
particular, by RCA Some in the
industry blame the last chair-
man . Mr Edgdr Griffiths, for
being tob keen to show that
he _was as adept at steering
RCA into hew growth markets
as be was at axing existing
businesses . which . performed
poorly. ,

.. Viewed against a’ longer-
term perspective, some argue,
videodiscs' showing has not
been all that bad. The; 105,000
players which RCA sold last
year compare with 54)00 colour
televisions sold in the U.S. in
1954, the first, year of produc-
tion, and 34,000 VCRs sold in
1074, the launch year. This year,
about 11m colour sets and more
than 2m VCRs are expected to
be sold in the U.S.

Furthermore, disc .sales have
exceeded r RCA’s expectations.
Owners of its CED players have

bought more than 20 discs each
on average, about three times
' more , than .forecast .

• As an entertainment medium,
rideodiscs’ claim on consumer
- spending rests heavily on the
~ fact that they -are priced to sell
at About . -half as much as -pri-
-recorded ‘videocassettes. But it
• remains to' be- seen whether that
advantage ..can be . sustained
against the increasingly wide-
spread rental. and. Illegal, cut-
price pirating of cassettes.' The
advent of ; subscription tele 1
vision via cable and satellite In
Britain could also provide keen
competition. '

L ln tbe ionger term, enthusi-
asts hope that videodiscs will
evolve,:, "-into. 1 -a distinctive
medium. offering features
available on \ no other video
format.:. They are excited about
the possibility of putting on
videodisc. - educational pro-
grammes. teach . yourself;
courses, electronic games, even
illustrated books and. magazines.

Little - :' 'suitable ' programme
material is yet .available for the
consumer market. But specially-
programmed videodiscs have
begun.to make an impact among
business and institutional
customers. In the U.&* General
Motors and Ford have bought

A choice of three incompatible systems

RIVALRY IN the videodisc
market has produced three
types of system designed to
different and incompatible
standards. . Though they may
share some of the same pro-
gramme material, discs made
for use on one type of
system cannot be played on
the others.

. Technically - . the most
sophisticated, versatile and ex-
pensive system is Philips
Laser Vision, ft uses an optical
disc on which the information
needed to create moving pic-
tures and sound is recorded
in the form of billions of tiny

reflective pits embedded in
the surface and shielded by
a protective coating.

The discs, which are almost
indestructible, are scanned by
a laser beam as they revolve.
The Philips system Is par-
ticularly suited to “inter-
active” two-way applications
and can be pre-programmed
to respond to a range of
instructions from the user.
For instance, it can be used
to test students by posing
questions and checking the
answers.

RCA’s CED system was
designed to be inexpensive to

manufacture and offers few
frills. Current models do not
offer stereo sound, freeze- 1
frame or the inter-active facili-
ties available on LaserVision.

The RCA disc also contains
tiny pits. But they are
indented on the surface and
are tracked by a pick-up
stylus which is guided by a
microscopically fine spiral
groove. The - stylus is
equipped with an electrode
which senses the different pits
by changes in electrical
capacitance.

Because the disc ean be
easily damaged It is stored
in a sleeve or “caddie”-.

which is loaded into 1 the
player through a slot The
machine removes the disc
from the caddie, and replaces'
it after, play so that it is
never touched by hand.

In both technology ami'
cost, tiie VHD ‘ system de-
veloped by JVC occupies,
the middle ground. Like the
RCA system, it uses an
electrically conductive disc
which is read, by a stylus and
is stored in a protective
caddie. But instead of follow?
ing a groove.' the stylus is
guided by electronic servo
controL

EDGAR GR IFFITH S
Too optimistic?

a total of 14,000 videodisc
players for: staff training.

At. GM,- trainees select an in-
struction programme. After it
has been screened, .the machine
displays questions and invites
trainees to tap in “yes” or “no"
answers. If these are correct,
the player, moves-bn to the. next
part Of the course. If they are
wrong, it : plays the same pro-
gramme again.

Such applications could pro-
vide an important market for
videodiscs in the longer term.
But they are a world away from
the tantalising promise of
mass consumer sales which
originally. attracted many
manufacturers to the business.
Perhaps that promise -will still
be kept, though it looks in-
creasingly as if those com-
panies hoping to .cash in on it
will have to be prepared for a
long bard struggle ahead.

Men & Matters

Family man at
Jardines

A family note is to be struck
amid the 150th birthday cele.
brations being staged, this year
by Hong Kong trading con-
glomerate Jar dine. Matheson,
Joint managing director John
Heywood has decided to leave
the group at the end of July.
His successor is expected to be
Simon Keswick. 40. He is a
descendant of the Jardiue half
of the original partnership and
is the younger brother of
Henry Keswick, the former
Jardines chairman who has
now returned to run Matheson
and Company, the group’s
London arm.

The Keswick family remains
substantial shareholder in
Jardines, and has three mem-
bers on the Board— Henry,
Simon, and their unde Sir
John Keswick.

Simon Keswick is a fourth-
generation company "man — his
great - grandfather William
Keswick was the son of
Margaret Johnstone, a niece of
founding father William Jar.
dine. Simon’s 20-year progress
through the ranks has been
keenly watched, and his pro-
motion will inevitably quicken
long-standing rumours that he
will one day succeed present
chairman David Newtoigging.

His past postings include
Japan, Singapore. Europe,
Australia and Hong Kong, and
so it is appropriate that bis
new job will carry responsi-
bility for overseas operations.

John Heywood. meanwhile,
leaves the fold at 44 with no
fixed plans other than to return
to Britain. While the Keswicks
are rooted into the Hong Kong
soil, Heywood s foray east was
more capriciously inspired.
WhHe working in London for
Courtaulds back in 1962. he saw
Bob .Hope and Bing Crosby's
Road to Hong Kong” at the
ABC cinema in the Fulham
Road, London, decided to up

sticks, and landed a job with
Jardines. “ I saw the film on a
Sunday,” he recalls, “and by
Wednesday I'd signed up."

Heywood says his leaving
Jardines is motivated by a
desire to get stuck .into some-
thing new while he still has
ample time to do it. His steep-
ing in Hong Kong's frenetic
pace of work— 10-hour days and
Saturday working are com-
monplace— should give him a
head start back home.

Simon Keswick was unwilling
even to confirm his new job
yesterday. But Heywood has
no doubts about bis successor.
“Absolutely the right man for
the job,” he says. “Very, very
talented, and if he were not a
member of the family he would
still have sot it.”

Radio bores

Citizens' Band radio has not
taken Britain by storm since it
was made legal last year. Some
companies have warehouses full
of sets they cannot sell.

Yet it has been given a warm
welcome by a breed which. 1
confess, mystifies me. People
Who Organise Others. They
have taken to CB as an impres-
sive new .weapon to add to their
armoury. It is rare these days
to see . a self-respecting
organiser without a two-way
walkie talkie in his or her band.
They hiss, crackle and chatter
at horse shows, flower shows,
sporting events, art exhibitions,
museums, and even at village
fetes where George is usually
within old-fashioned shouting
distance.

Most sets have a sinister
control knob marked squelch.
Who or what suffers when it is
turned 1 dread to think.

At a posh ceremonial occasion
in London this week every
public relations person— and
they were numerous— had a CB
radio. Lots * of communication
was earned out. Clearly much

innocent pleasure was derived
from it

But one young PR-chick was
a bit dim .as to the true function
of her set “I say,” she piped
shrilly into her microphone.
“Get off the line. Ail you people
hang up. I'm ringing my boss.
You're on a crossed line.”

Howe accounts

I know some rare birds who
pull out Bank of England
cheque books, and Coutts
accounts have style, although
that bank is now a subsidiary of
one of the big four. But where
doe,s the Chancellor of the
Exchequer keep his piles? Sir
Geoffrey Howe is a Barclays
Bank man, it is how revealed,
and has been for many years.

He disclosed this hitherto
private side of his life last night
at the Building Societies Asso-
ciation dinner when he*thanked
the association for stirring up
the British banking scene, “r
acknowledge your help in open-
ing my bank on Saturday morn-
ings ” he said.

Bible backing

A new Biblical epic is likely to
be the most expensive story
ever told. The U.S. film Heaven's
Gate is the costliest cinema film
yet made at some $40m. It will
look cheap, however, against the
new video production which will
cover Uie Bible in its entirety
and will 11 come in “ as Holly-
wood. says, .at an estimated
5200m. The production schedule
will run until 1993.

The first instalment of what
promises to be .a lifetime of
Biblical viewing was launched
in Britain yesterday with the
Book of Genesis and the; Gospel
Of St Luke, packaged in a set
of 33 volumes of films, maps,
and teachers' guides. They are
selling at £125 an episode— a
mite more expensive than the
printed word.

The work, which will
eventually last 225 hours, is the
inspiration of John Heyman.
aged 49, the film producer who
is also heavily involved in film
financing.

The idea came when he and
Chi am Topol, the actor, were
asked by David Ben Gurion, the
former Israeli prime minister,
lo consider how a Biblical
institute could toe financed in
Israel. The project fell through
but the initiative sparked off
then resulted in what became
known as the Genesis Project.

Heyman modestiy admitted
yesterday to having “a certain
ability to raise money.” He
said, “The project is not.jusi
a Bible translation. Each chap-
ter comes with a lecture on the
archaeology, sociology, and
philology of the Holy Land.”

Heyman says he will not
personally see any money from
the project because of the
length of the production period
— bat his grandchildren may
benefit. A number of companies
including CEMP Investments,
and the First British Bank of
Columbia ; are also backing it as
a long-term investment

Media exposure of a heavenly
project con have iU problems.
One clergyman connected with
the production was irate, at
being quoted in an evening
newspaper as saying that the
hundreds of Israeli extras were
“ unusually attractive." He
sighed recalling the incident
“I only said they . were
unusually attentive ”

Big fiddle

As the flower people headed
from Sloane Square towards the
Chelsea Flower Show yesterday
they passed a violin-playing
busker. A. card was pinned to
his coat: “Delusions of grandeur
to support.”-

Observer

-.'•.isat

.UCCHBrauncmi

i-

Fi^Halvfjjnes^ • WeSnesdaY May .19* i982

EUROPE’S PEACE MOVEMENT

East

'' THE KREMLIN must be taking
considerable satisfaction from a
' “ peace conference "..staged in

Moscow last week and. the well-
publicised attendance there of
-r. Mr Billy Graham, the American
. ..." s -'- ‘. evangelist and a man -who once
> ‘ > .J said of the Soviet Union: ** the

/ ' • .■ ' devil is their God, Marx is their

- prophet and Lenin their saint'*

The presence in Moscow of
.'Mr Graham, despite strenuous
. White House efforts to dissuade
v- •- him from going, is hfghly
symbolic to the Soviet-Union. Jt
. ; .. is taken as evidence .that the

7 *v anti-nuclear movement which
spilled on to the streets of

• Western Europe last "year has
now crossed the Atlantic to the

- ... U.S.

The Sonet Union dearly has
- ■ cause to like peace movements

- / ' — but only when they are in the

. ... West. Recently, Soviet leaders

. ' - have grown apprehensive that
■ ■ ;; the peace contagion may be
catching and spreading East.
... ' Coinnienting on the emergence

• ' . «f genuine, unofficial peace
■ movements in Eastern Europe.

' particularly East Germany and
' Hungary. the foreign affairs
. . . i- V weekly New Times, ascribed
■' these to Nato attempts to

• “ provoke in the socialist
<?oinrtries an inverted version of

^'Western, protest movements.”

; Yet it was more or less in-

evi table that there should be
some spillover of the Western
, peace movements into the East,
'• particularly East Germany
" where people can 'pick up
- Western broadcasts at the flick
jof a radio or television switch.

These East European viewers
must have been startled last
.Tune to see on West German
tel evision news Cha ncellor
: Schmidt being shouted down by
young people chanting
*' Afrriistung " (disarmament)

- when he tried to address the
Protestant Evangelical Church
j Congress in Hamburg. This was
how the peace movement burst
ioji the West German scene.

The churches took the lead in
M,r ^ the West German movement.
One of the oldest pacifist groups
in tha German Protestant
[Church. AJction SUhnezeichen.
| created a slogan which is now
| as well known as any advertis-
i ing jmgle: Frieden schaffen
oil tic iraffen (create peace with-
1 out weapons). The slogan, dis-
played as a car sticker, at first
often subjected the driver to
derisive taps on the forehead
from his feldow West Germans,
...„but the mood soon changed.

By last autumn the movement
— could field 300,000 demon-

, By Our Foreign Staff

v

■In.'

straiors and had won wider,
sympathy. President Reagan
will get a first baud taste of
this growing West German anti-
war mood when die visits the
country next .month.

East Germany's disarmament
movement also had religious
roots. It was born -at a peace
forum last year held by the
Protestant Evangelical Church,
the country's sole organisation,
(apart from- the smaller
Catholic Church) which is not
under government control.

Young Christians at toe
forum adopted the biblical
phrase “ swords into plough-
shares" as their motto and
distributed, an erablenu which
followed up this theme, showing
a statue of a man beating a
sword The East German
authorities were .not impressed.
Young people who wore the
emblems on their clothing were
ordered to -remove them or face
expulsion from school and jobs.

Many of the Wearers were'
young men who bad previously
petitioned the Church to press
for an alternative to military
service. a ** social peace
service” Blast German con-
scientious objectors are only
given the choice of serving,
without a weapon, in a
military construction unit

When the East German
Protestant Church protested to
the Government over the “ mili-
tarisation" of society and toe
harassment of peace symbol
wearers it was reminded of the
apolitical role it agreed to at a
1978 meeting of reconciliation
between East Germany's leader.
Herr Erich Honecker, and
Church officials. There is a
deeply ingrained tradition
among the East German church
hierarchy that toe Church must
not get involved in secular
affairs, a mew not shared by a
number of younger pastors.

One of them. Rainer Eppel-
mann, who bears a striking
resemblance to Vladimir Lenin,
is a youth pastor, in East Berlin.
Last February "Pastor Eppri-
mano broke every taboo in the
Church's rule book by issuing
a highly political disarmament
petition which he called toe
Berlin Appeal. It demanded the
removal of all nuclear weapons
from Germany and toe con-
clusion of a peace treaty with
Bonn and East Berlin by toe
four World War H attics. This
was to he followed by the with-
drawal of their “ occupation
troops” .and a guarantee of
“ non - intervention *’ in the
internal affairs of the two

West Germans protesting against U.S. nuclear policy.

Germanics. The Pastor also
called for a hait to all "demon-
strations of military strength "
in East Germany- and the re-
placement of military instruc-
tion in schools with *■ peace
instruction.*’ Pastor EppeJ-
mann was taken into custody and
interrogated for two days by
the State security service.

Most of his fellow churchmen
labelled the Pastor's demands
as “ utopian " and, with 4SO.OOO
Soviet troops in the country-,
the majority of his fellow East
Germans, but not ail, appeared
to agree.

It is difficult to gauge toe
support for the peace move-
•but 5,000 young East. Germans
gathered in February in
Dresden's Kreuzkirche for the
first peace demonstration in
Eastern Europe. The Church
in Saxony had firmly backed
young- men . in the region seek-
ing an alternative . form of
national service.

The East- German leadership
has reacted to the peace move-
ment as if it was a major threat

to its stability. President
Erich Honecker loudly pro-
claimed that 13 million East
Germans (out of 17 million) had
signed the Government's appeal
for peace in 1979 and that

when we say peace we mean
it."

East Germany's youth
organisation (FDJ) has put out
a counter slogan: “Peace must
be defended— peace must be
armed.” But young East
Germans who have had .their
peace emblems ripped off their
clothing by The police have
refused to submit. They now
wear unadorned white squares
of cloth in their place.

Even ■ in relatively liberal
Hungary two conscientious ob-
jectors were last month given
prison terms of 30 months and
five years. The churches have
generally provided the main-
spring of anti-war sentiment in
Eastern Europe, though the
strongest church of all, the
Polish CathoHc Church, has
been totally preoccupied with
that country's internal prob-

lems. and any peace movement
would not be easy to organise
under martial law.

In maverick Romania, the
peace - movement is actually
government poticy. President
-\ieolae Ceau.se sen has made
speeches, organised confer-
ences and held official demon-
strations, all in favour of
nuclear disarmament by both
East and West. This in all the
more remarkable since Mr
Ceausescu practises what he
preaches: Romania is the only
Warsaw Pact country which
has been reducing its defence
budget. But this has virtually
no wider effect in the Com-
munist bloc.

For the moment, the Kremlin
leadership can be confident
that Their own Soviet “peace
movement’* will not get out of
hand. There has been a Soviet
peace comnvtiee since 1949, but
it bears as much resera bience
to spontaneous peace commit-
tees in the West as the
Supreme Soviet bears to a
Western parliament. The com-
mittee is headed by Mr Yuri
Zhukov, senior foreign affairs
commentator for Pravda and a
member of the party central
committee.

Soviet television recently
showed a peace march in action.
AH toe banners were neatly
priii red classics of standard
Soviet propaganda and the dis-
ciplined columns of marchers
paraded 1 through carefuliy
cleared streets for the benefit of
cameras. The peace corn anti ee
even printed an advance
schedule of forthcoming peace
demonstrations in various
Soviet cities, including the
exact number of participants. in
each march.

The Soviet Union also plays
host to innumerable peace con-
ferences. the current one under
the imposing title “Religious
workers for the salvation of the
sacred gift of life from a
nuclear catastrophe." Jt has
been officially sponsored by the
state-controlled Russian Ortho-
dox Church. One British cleric
described its proceedings as
*‘ inteHeciually feeble and poli-
tically fawning ” That is prob-
ably just how toe Soviet
leadership would like its peace
movement to remain. Whether
it wfH stay passive if genuine
peace movements spread in
Eastern Europe is another
matter.

Research by Leslie Colitt in
West Berlin. David Buchan in
London and Anthony Robinson
in Moscow.

The Falklands

Appeasement is not an
acceptable policy

By Maurice MacMillan, MP

IT NOW looks as if all attempts
to get the Argentines out of
the Falkland Islands by diplo-
matic means will fail. For what
they are still demanding is not
legitimate compromise over con-
flicting interests but shameful
surrender of vital principles —
now and in the future. There
are two points of principle on
which there can be no compro-
mise: first, that aggression must
not pay: second, that self-
determination must not be
abandoned. Any real conces-
sions on these points would
wreck national unity, shatter
our new-found self-confidence
and destroy toe credibility of
the British Government at home
and abroad.

That is why it was necessary

to send toe Task Force in the
first place: not only to streng-
then our negotiating position,,
hut also to liberate the islands
by force if a peaceful settle-
ment could, only be brought by
virtual surrender to Argentine
.aggression.

Nevertheless the Government
was right to negotiate, although
negotiation inevitably means
compromise. But the extent to
which compromise is justifiable
depends, at least in . part, on
how much "' movement "—to
use a trade union term — toe-
other side is willing to make.
There were three main points
at issue in the negotiations on
which toe Government was
willing, perhaps too willing, to
make concessions. Now it seems
that even these have been
rejected, and do significant
concessions offered in return
by toe Argentines.

But these three main points
will remain at issue both in
the negotiations, which must in
the end be undertaken to
achieve a longer-term solutfon,
and in any negotiations which
might be continued in order to
obtain a ceasefire — even after
toe British reocrupation of the
islands by. invasion has started.
• First, sovereignty. It is not
possible to negotiate about toe
present sovereignty of the
islands: hut we need not
demand that Argentina abandon
her claim — for we cannot deny
that in the past we have been
willing to negotiate about it
We can, therefore, agree to
discuss possible changes for the
future: but only if Argentina
agrees to start negotiations

without any sort of actual or
implied guarantee over the -out-
come — least of all with, the
certainty that she will
ultimately have absolute
sovereignty over the islands and
the islanders.

Whether the immediate
future of the islands is settled
by diplomacy or by force, these
longer-term negotiations will
take some time — certainly
longer than Britain can main-
tain her Task Force in the South
Adamic. Once it Iras withdrawn
and economic sanctions have
been removed our sole lever will
be whatever British force
remains in the islands.

• Second, administration. We
have responded, to the illegal
invasion and use of force by
Argentina by saying that this
illegal use of force must not
succeed. The danger of a
negotiated interim administra-
tion must be that the arrange-
ments themselves imply that
Argentina will be- the sole ulti-
mate administrator — come what
may. This danger is obviously

t The British Govern-
ment-must not agree
to terms that virtually
guarantee a nearly :
complete Argentine

success 9

less once Britain has reoccupied
the islands — but it will still be
there, because of the pressures
to reach a longer-term solution
quickly.

Some compromise in toe
longer term may be. possible,
provided that the islanders are
fully protected and not ulti-
mately forced to choose between
accepting a wholly Argentine,
administration and leaving the
islands— regardless of however
generous terms of compensation
might be offered. The British
Government must not, now or
at any stage, agree to terms that
virtually guarantee a nearly
complete Argentine success.

• Third, self-determination.
Originally it was the wishes of
the islanders that were to be
paramount in deciding toe final
outcome. This did give them too
powerful a right of veto over the
negotiations, for from a prac-

tical point of new .vislica can
.never really be paramount TTv?
United Nations phrase mad? toe
islanders’ interests paramount.

In the course of negotiations
this became “full consideration'
of their interests.

But I do uoL see how we can
now abandon toe principle oF
seif-determination. Qbvinu&ly it
is impracticable for every com-
munity. large or small, to have
the right to change its status
and choose which nation it is
going to move to — regardless of
the wider consequences or toe :
realities of power. But that is
not the meaning of self-
determination fnr the Falkland
Islands.

Here the principle of self-
determination means that it
should be unthinkable to Britain
-(and. I hope, to every member .
state of the United Nations, for •
itis a United Nations principle)
that any community should have
forced upon it a change of
status and a government it finds ■
repugnant. We will create a
dangerous precedent of appease-
ment if we once admiL that
(hough some communities, such i
as Northern Ireland or ;
Gibraltar, will not be handed
over to another government
without their fulj consent,
others, such as the Falkland
Islanders may be — -simply be-
cause it is inconvenient or diffi-
cult to do otherwise. We must
not abandon the principle be-
cause we have not the will to
carry it through.

Since every reasonable com- ,
promise un these three points
seems to have been rejected by ’
Argentine intransigence there
now appears to be no aitemafiw
to the reoccup3tion nf the .
islands by force. This will
inevitably mean British casual-
ties — a prospect we all view
with ahhnrrenc-e, but one which
in all the circumstances is. T
believe more acceptable to the <
British people than terms which
they judge to be a surrender
of the principles to defence 1
which (he Task Force was
despatched.

Appeasemeni has failed too
often in the past, ana its
failure has killed and maimed
loo many people, for it to be
an. acceptable policy, now or in
the future.

The author is Conservative MP lot
Fatnham.

Letters to the Editor

The Falklands: the future, the fleet and the BBC

..

'row Mr F. .Y eicman
Sir. — It bothers me - in the
•resent dangerous situation to.
,hat extent the islanders’
esire to remain British may
erhaps be influenced to a
isnificant degree by many
ears of British aid funds sup-
ortins a community infrastrue-
vre which their eeefcomy as a
-hole could ■ not otherwise
(ford.

Such aid is no doubt all very
ell in support of our. residual
domal heritage, particularly
le as doughty as this; but
hen it distorts expectations of
distant community as small as
us beyond the -realities of
icir geographical position, and
} less Britain's reduced
obal responsibilities.' realism
jould intercede. Mote particu-
rly now. when the shooting
is'started.

On the other hand aggression
iauld not be allowed to sur-
■ed. altboush here again some
eight needs to be given to
^parent British indifference-
,er 20 years to mounting
raentine hysteria on. the. sub-
let. Also to the fact that
•sardless of our Government's
islike for the junta some
30.000 British seem to manage
j live a satisfactory, life-style
enerailv under it.

Our Government has risked
lot in sustaining the inter-
ational principle that aggres-
ion should not pay; but now in
e face of declining support
.■cun toe international com-
mnitv the time would appear
i have arrived when we need
3 consider Britain’s wider
iterests. particularly with
?gard to trade in toe enormous
outh American market which
c have now placed in
;opaTdy.

Wasn’t it Kipling who m
hntoer context and another age
^id we have learned a hell of a

lesson, it has done us a lot of
good? After this is ail over let’s
look again at Gibraltar.

Peler F. Newman;

2 Maplehatch Close,

Godalmiug. Surrey. -

From. Mr E. Williamson

Sir,— Oh toe main BBC news
at. 9pm on May 13, there was an
extract from a filmed interview
of .General Galtieri by a British
journalist. It was ' the first
opportunity I had had to judge
for myself both what the
GeneraT said and, perhaps more
important, how he said it.

The BBC chose to stress and
re-stress tire General's positive
and co-operative response to
one of ibe questions put to him:
but his equally positive and
unco-operative answer to the
other question was ignored in
subsequent comments on two
separate occasions in toe same
bulletin. Who was responsible
for that one-sided and very mis-
leading comment on such, an
important piece of news, for
that is what such editing
amounts to?

Perhaps your Chris Dunkley
(back page piece on Mr A) as d air
Milne, May 15). might help Mr
Milne by pointing out to him
that there Ls nothing in the least
unusual in the efforts off the far
Left to go to infinite trouble
(phone calls approving BBC
activities are hardly any trouble
at aH) to further toeir a tins. He
had perhaps better be careful
that be does not become one of
Lenin's “ useful idiots."

E. & Williamson.

5. Sira neon? be,
Claptnn-in-Gordano, Bristol

From Mr J. Morrison

Sir. — It has already been
observed that Mr Reginald
Dale's Lombard article (May
•131 is in poor taste. It is much
-more than that. Notwithstand-

ing the ironical last sentence,
Mr Dale'x plain aim is to sug-
gest that oiir Falklands' expedi-
tion is- likely to be "the greatest
military fiasco ”■ in modern
tunes. That, surely, is giving aid
and comfort to the Queen's
enemies. But his. argument for
that conclusion is, in fact, an
extremely bad one. since, even
if toe analogy were to hold'
(and anyone with the merest
smattering of knowledge about
toe Sicilian expedition will be
aware that it does not) circum-
stances .alter cases, and an
analogy is rhetoric rather than
argument

The Sicilian expedition was
a piece of blatant, aggression,
the aim tif- which was to extend
the Athenian Empire by con-
quering the'dorainant naval and
military power in western
Greece. No one in his. senses
could say that our expedition
is an attempt to conquer Argen-
tina and extend our power in
. the South Atlantic. The
Athenians foredoomed their ex-
pedition to failure by sacking
their best commander while the
fleet was on its way-, leaving as
senior commander a. man who
■ had argued against sending the
expedition in the first place and
was' in any .case a sick man. It
. was his leadership, the outcome
of political Interference from
home, which caused the disas-
ter..

The aim. not the strength, of
Mr Dale's argument is what
reasonable-minded people, con-
cerned that violent aggressors
should nor be allowed to get.
away with their crimes, are en-
titled to object to. I object
most strongly, and am surprised
that you should have thought
that any good purpose would be
served by printing his article.
John Morrison.

Granhams, Great Shelford,
Cambridge.

London Transport
library

From Mr L. Chapman '

Sir,— The London Transport
employee who complained (May
7) that I had not visited toe
library to check my facts was
herself mistaken. I made three
visits, and one of them was
accompanied by the senior
officer who later carried out
desalted enquiries for me.

The re fence in my book to
the cost of the library referred
to running expenses including
salaries, accommodation and
overheads compared with which
the purchase price of records
was trifling, and irrelevant
The library was merely one
example, of the many perks
which employees in these largely
non-accoun table authorities can
obtain at the expense of the
general public. The only atypical
feature of this example was
that, after investigation, it was
thought prudent to bring it to
an end.

Leslie Chapman.

Green Pastures,

Blackley,

<Yr. M oreton-i n-Marsh.
Gloucestershire. _

ivesting for

nsions

•om the Chairman.

nr tin Paterson Associates
Sir. — In reply to my letter,
ivid McLeish (May 4) argues
at toe rebate allowed to
ntracted-out schemes ran be.
•vested at high rates of in-
,Uhrest. Such investments, he
LXums. can he extended into
tireraents where the pension
heme has only then to replace,
e fixed .money part of toe
pension. TherGovernmeni
'•riiiiF has valued this part of
* benefit el 3 per cent and
first sight it seems to provide
sure source of profit for the
atracied-out employer, which

will compensate for a negative
yield relative to earnings.

We are. however, considering
relationships over very long
periods. ' Mr McLeish rightly
suggests that a large part (75
per cent for a typical fond) will
be in equities and property.
The Government Actuary' was
driven to use illustrations based
on 100 per cent equity invest-
ment to. demonstrate positive
Investment returns historically.
In advising this pattern of in-,
vestment, the actuary is
primarily concerned - with
matching liabilities in real
terms with real assets, rather
than, actual rates of interest on
fixed-interest investments. Buy-
ings gilts to match a final salary

liability is today seen as highly
speculative.

The conclusion this leads to
is that there is no investment
which will guarantee toe terms
on which real, assets can be
converted" into money assets
when employees retire over
future years.- The contracted-
out employer is effectively
guaranteeing (inter alia) 9 per
cent as an average rate of in-
terest. Today that seems very-
modest. Fifteen or more years
ago it would have seemed im-
possibly high. No amount of
theoretical argument should be
used to disguise the risks which
contracted-out employers accept
— J only ask that they accept
them knowingly, -
Martin Paterson. ■

J0, Buckingham Place, SW1.

Offshore

contracts

From the Executive Vice-
Chairman, Offshore Division,
British Shipbuilders

Sir. — In your -supplement on

Norway (May 11) in the feature
on shipbuilding it was stated;

. . they argue that Norway
cannot take the' lead in with-
drawing slate financial support
when countries such as Britain
and Canada continue to assist
their companies in making low-
price bids for offshore con-
tracts.”

This is simply not true and
cannnl be allowed to pass un-
challenged. The fact is that
there is no financial support
whatsoever in Britain for off-
shore contracts.

Notwithstanding this situa-
tion British Shipbuilders has
deployed two of its major ship-
yards to oil rig construction,
while a third company offers
design and consultancy services.
We have on order or under
construction three major -semi-
submersible platforms, one of
which is for a leading Canadian
company. Furthermore, we have
recently imroduced our own
semi-submersible design, toe
BS 8000 DP, capable of
operating in very deep water
and toe harshest environments.

With these orders we have
now successfully . entered the
offshore construction industry
hut this has been without any
direct State subsidies being in-
cluded in the prices at which
we obtained this work.

J. E. Ste-ele.

157 Kviglitsbridgc, SW 7.

ONE SET OFFIGURES

SHOULD KNOWABOUT

• . .

It’s the telephone number of Barclays Investment Management
limited, a wholly-owned subsidiary of Barclays Bank Trust Company.

We specialise m providing full investment manag ement services

we manage on behalf of company pension funds.

As you would expect from the size of these figures and from
our Barclays Group pedigree, Barclays Investment Managemen t
limited possesses the skills and resources needed to manag e your
company's pension fund-and to do it very well-whether yours is still
a medium-sized company or a multi-national corporation.

If you would like to know more, the man to talk to is
Bill Hilling, Director and Investment Manager; Barclays Investment
Management limited, Juxon House, 93 St. Paul’s Churchyard,

London EC4M8EH.

Ask him about the kind of performance his fund managers have
achieved over the past five years, the quality and extent of the service
pension fund clients can expect to receive and the comprehensive
admin istrative back-up that can be included in the package if required.

We think you’ll be impressed with his answers.

BARCLAYS

22

, r ^. r r~~r. M ' 1/7 —*Z; r* »^asrwc&" ::■- '-• • v ‘a>n »L' - **& ? * — /

V '*r •

; . r< ^ nari piaT -TimRR ifeeflnesd^ May^a : 1982

and Martels

UK COMPANY NEWS

Duport returns second-half profit

A STRONG recovery was effected
by Du port, engineer and dom-
estic equipment manufacturer, in
the year to January 31 19S2.
Indeed, the company returned to
the. black in the second six
months, with pre-tax profits of
£254,000 sharply reducing the
fall year deficit from £13.91m to
£325,000.

In addition, as regards the
current year, Mr J. H. Russell,
chairman, says be believes the
group can consolidate on pro-
gress made. However, in view of

the need to continue to reduce
borrowings and bearing in mind
interest relief presently obtained
on the subordinate loan stock, no
dividends on both classes of
preference share or on _ the
.ordinary are being declared.

Principally due to the absence
Of sales from steel interests,
which have been sold or
terminated, turnover . for the
year under review fell from
£153.(jftn to £T1.51ra. Neverthe-
less. at the trading Level with
no stee^ losses, there was a turn-
round from a deficit of £9. 54m
to a surplus of £i.24m.

A divisional breakdown of
turnover and results on trading
shows: metal forming £25.46 tn
(£29.76m) and £1.01m (£ 1.66m)
loss: furniture £29.S4m (£32.36rn)
and £167.000 <£1.16m» loss;

plastics £1 6.22m (£l5.59m) and
£2.22m (£1.12m) profit; steel in-
terests nil (£76.96m> and nii
Y£7.S8m loss); inter-divisional
sales added £13.000 (£902.000) to
turnover, while oiher interests
gave £196.000 l £36,000 1 to profits.

Actions to reduce the group's
cost base and reshape loss
making business continued
throughout the year with the re-
sult that £460,000 of redundancy
costs were charged before
trading profits and a further

m

Lex briefly looks at the difficulties facing a U.S. bond
trading firm and then goes on to discuss the decision facing
the Office of Fair Trading of -whether to refer Great Universal
Stores’ bid for rival mail order group Empire Stores. Insur-
ance broker C. E- Heath presented its full-year figures yes-
terday showing a jump in profits from £12.6m to £ 17m, thanks
to a sharp increase in brokerage income. The column then
goes on to consider the figures from Duport where profits in
the second half have held the full-year loss to £325,000, against
£13.9m deficit and the balance sheet looks much firmer.
Finally the column comments on the results from Lloyds Bank
Internationa] which has deconsolidated its local Argentinian
operations. The figures suggest an underlying slowdown from
the recent rapid growth rate.

from disruption associated with
restructuring.

He says good progress has been
made in the realisation of the
remaining assets and settlement
of the external liabilities of
Duport Steels, the subsidiary
which incorporates the group’s
steel activities and which has
borne all Ibe closure costs and
asset write-offs associated with
their disposal and termination.

Conditional agreement has
been reached for British Steel

Lloyds Bank

Intnl.

higher

By Paul Taylor

DESPITE A - £7.47m jump in Additionally, pre-tax profits ping, that despite, an 80 pci* cent
turnover to £XS.9flm. the taxable included a share from.asaociates v increase lb.- tUmqver. following -
Lloyds Bank international, the profits -of Hunting Gibson fell by of £2.43m (£1.55ra) and were the ’ acquisition' of. Stag Lang. •

international banking arm of the. ft per cent In 1981 from £3.75m struck After augmentation pay- There is surplus capacity da the

UK -based Lloyds Bank group. to£3.41m. . . menfe to ■ retirement benefit inarket-r^dOnnining rates— and

yesterday announced pre-tax Eairrings per 25p share, are sc ^ iem ? s £15.2,000 (£481,000)- Hunting now -owns mere of it
profits for the six months to erf given li31p lower at 25ilp blit Tax. took £U4m ^(SlfcQOO) ? fonnerly.' ' ShipbrokiDg, '

March 1982 up. by £2.1m to tfae year’s net distribution is leaving net' profits- of P owe ? er i has-roeenroore reward-

152. 7m over the same period last — -- _ _ ■. - i»*-« - - : ° » ■ — —i— -'• h -

Oirnnratinn (Overseas Services) Berthe Mme period UKt being held at 6p with a same ,(£3-23m). After. minority ^ E.. AGfts^i proving able.

lalwt agiun final of dp. iote^te 'of £129,000 1 (£115.0001 l * ?.«* uP^bdsmess from ks

&c h 4. W =SS«^ SSSSIS

■ — i — j v..iu: — r i.—iii 4- .-m. Ahn . unnra T.nrs • — . £8 34m Profits. • efflefsfid "■ »! js.iim . pawiiBg, computer services and

£1.58m of reorganisation expendi-
ture has been included in extra-
ordinary, items.'

Interest charges declined from
£4.53m to .£l.ti2m, with £lrl6m,
which, included tlie cost of
nnaocing steel interests before
disposal to BSC. falling -in toe
first half and £462,000 in the
second.

The pre-tax result included
£55.000 (£161.000) of dividends
from trade investments and was
before a tax credit of £8,000
(£64,000 charge).

Last time £41 .Sm was written-
off on the termination and
disposal of steel interests. There
has been a release of provision
this time of £3.05ra, resulting in
extraordinary credits of £ 1.77m.
(£44.31m debits) and. as there
are on dividend payments, a
transfer to reserves of £l.-$>m
(£S8.31m from reserves). The
inss -per share fell from 32.$Sp
to 0.74p.

Tlie balance sheet shows a
strong recovery from tlie com-
pany’s critical financial position

at the beginning of the year.
Shareholders’ funds at January
31* 1982 totalled £14.65m

(£3 2.85m) and there was a turn-
round from net current liabilities
of £4.9 1m to assets of £4. 35m.

Short-term borrowings were
reduced from £ 13.5iu to £2.74m
and long-term from £14.S3m to
£4.46 tu. Capital employed

amounted to £23J26m (£34.S7m)
and fixed assets were £17.S3m
(f20.79m).

The . directors say bank
facilities continue to be sufficient
for the group's requirements and,
while growth opportunities are
being sought and developed, firm
control of the level of borrow-
ings remains a priority, ‘ -

Mr Russell reports that re-
organisation of major parts of
the group is continuing but
benefits to profits will not accrue
until later this year. Meanwhile,
the first half of the current 12
months has suffered from a
further decline in demand in
some important markets and

Steels to reduce its secured bank operations of the 38 Lloyds
overdraft which is consolidated branches In As-gentina from the
in the accounts in short-term latest results. The bank has not
borrowings. Further proceeds adjusted figures for previous
may arise in due course under periods to reflect this,
a formula contained in the agree-
ment.

Furniture losses affect Alpine

Miles 33 for USM via placing

A SMALL entrepreneurial com-
pany whose computerised book
composition system is used for
the Stock Exchange Official Year-
book and was seven used for the
Royal Wedding invitations, is
coming to the Unlisted Securities
Market via a placing. Stock-
brokers Simon & Coates has
placed a third of the issued
capital of the Bracknell-based
concern Miles 33 with city
institutions for £735,000.

The placing was of 700.000
ordinary lOp shares at £1.05.
Most of the remaining two-thirds
of the equity remains with the
company’s founder, 39-year-old
computer specialist Roger
Holland, who has sold 600.000
shares. The net proceeds from
the £105.000 raised by the issue
of the other 100.000 shares will
be used to expand the business.

Since formation just over five
years ago by Mr Holland,
formerly with Burroughs and
Information International, sales
have risen from £425.000 to over
£2.1m with half going outside
Europe. The company’s main
customers have been technical
book publishers Butterworths
and Sweet & Maxwell. It is con-
cerned with research, develop-
ment and marketing and sub-
contracts all its manufacturing.

Profits for the year to the end

of February this year were mere
than doubled at £210,000, com-
pared with the previous 12
months. There was no tax
charge but on a fully taxed basis
the shares are on a historic p/e
of 21.9 and yield 2.72 per cent

While no profits forecast is
given for the current year the
company experts to pay a 2p net
dividend. Gordon Graham, chair-
man of Butterworths, is a non-
executive director.

The company's main product
is System 200 book composition
system but both this and ACT 1
System are based on the same
hardware. The software for
System 200 provides facilities
for composition on a large
number of foreign languages
and mathematics text books.
ACT 1 offers accounting facili-
ties for solicitors and document
assembly facilities based on the
25 volumes of Butterworths
legal encyclopaedia of Forms
and Precedents.

The new money raised will go
chiefly towards the development
of System 300 to be launched
next month which extends the
composing capability to the
potentially .more lucrative
market of magazines.

■Which is its third and smallest
placing of a high technology
company on the USM. as being
based on the “ particularly excit-
ing, growth prospects.”
Undoubtedly a successful launch
for the next generation system
should widen. Miles' world
market enormously. But as with
most of its counterparts, its only
real . assets are its personnel and
their ability to keep the products
a step ahead o£ the bigger
brethren - . So -far it has proved
that it can pick up some useful
customer names in the narrow
and more staid field of boob com-
position. Magazine publishing is
another thing.

blf realised? The*Lnl tial^ proceed! tieasurerfrays the bank tiritdts ^&5 m )“^ em ^000 Tosses {jjyjjjK • Dividends absoS W^AflSasW^Huiti^'
of £2m will be used by Duport it “prudent” * — W’ ggj; ' *g-d"E vh 1 " ‘

Sff ^5USl rJBttk >SS^1!SS"S- :S2Sffepg&. asS

JSSK “*5* (£3-29m) and 'the earnings S^e£-mUy “ flS,

Perstare to.19.14p; (3253p). , - PetiSSm-so the earnings teefe

LBFs total wrame for the first vices . £2^m (aH) < S3 l £124,000 • Comment": \

half ait £1 97.7m showed an in- losses (nil); and property Hunting Gibson's ; operating yield of S.7 per cent— is dearly
crease of 26.6 per cent over the development and refurbishment results •are dominated- by the somewhat less. than the indicated
first half of 1981 and an increase £951,000 (ml) and £55,000 (nil), vanishing of- profits from . ship- 4.1 times,
of £4.7m over the second half of
last year. •

After making - a £33.7m
(£11.5mV provision for had and
doubtful debts In the first half.

compares with H 60.4m dn the ^ESFmE- meteased eontrtbu- a2m. He ms he » particularly more satisfactory trading results,
second half of 19SL H on ?»«P2 ? double-glazmg.and encouraged thy the xeal and sob- -.The current position at Dreara-

Mr tw Whittle T KTs rfvief , , DoLphm^Showere atbsidiary, srfitial progress mow being made line remains unsatisfactory, Irf

" fiSSTtettWStaS kw.wtkSttk

1982 - • -'V': He"is SAW confident Oat the

<i€ w t L.^S^trrTHT^i e Tlie pre-tax figure was down sales reorganisation at -Dolphin

£L2Sm to £1.1*0, with SbovnTs will enisle ' : liiat
co tmU ” double-glazing’s ^share up feom company , to consoVIdate and
high interest rates. £101,000 to £152,000, and Dolphin strengthen its position in the

The pre-tax 7?^ hewers improving from £3.47m market ....

£17.3m oyer the second trff of giAftn. This, however, was - ** I expect . gradual progress of
the previous year were affected more than offset ^by the, Dream- our major, activities to continue
by two main factors. First, the jjn p fitted 'bedroom furniture off-
bank recorded an exchange loss s^oot turning round from a profit
on translation of overseas work- 0 f £54,000 to a £273,000 Joss,
ing capital of £12. 6m compared interim -stage, pre-tax

with a loss of £5.4m in the sa me proflte fead increased Sroa 1
. penod last year and a profit of £271,000 to £502,4)00:

£9. 7 m. in the second badf. Group turnover for the year

rlinitti wnA Secondly, total operating felI from £34^ to £2g.95m, with

SilarP llSc costs j* .t^s»x montiis^to end dorfle^laring- dropping . from

Legal proceedings have been
initiated against Duport Steels
for recovery of grants amounting
to £3.5m ; plus interest. Duport
Steels intends to defend and is
taking appropriate legal advice
on tfae claims Which, if proved,
would be unsecured liabilities.

The group, which has no
liability in respect of the grant
repayments claimed, has out-
standing unsecured loans due by
Duport Steels of £17.6m against
which full provision has been
made by the parent company.

Reviewing metal forming in-
terests the chairman says that,
with the completion of a
rationalisation scheme, foundry
operations ' are expected to
eliminate losses during the
second half of the present' year
at current depressed level of
demand.

Emray in
rise
to £ 0 . 2 m

daring tiie current year,". he
says, “and I believe that the
group is now in apposition to fake
advantage of any improvement in
market conditions.”

He adds that in February;
1982, the company introduced a

every effort to improve the sale®

performance., ^ ‘

Tax for the year took £515,000
(£269,000) and after minority -.
credits of £18,000 (£4,000 debits),
attributable profit was £625,000
(£859,000, which Included an
extraordinary debit of £645,000). ■

Dividends absorb £604,000
(£590,000)..,

.Stated earnings per 5p share
fell from S.ft4p to 5.43p. Pre-tax ; >

profits on a OCA basis were 1 1 1 i j * 1 -
-£792,000 (£829,000). and: earnings ?
per share. were 4L56p (4.%p). •/,, i-

number at significantly improved

. _ . . double-glazing products, backed'

Marafi, 1982 at £81.1m were t» £i5-94|n rir aamiin n fay an aggressive pricing poUcy -The - 12 per cent drop in pre-tax.

comment

Yorks & Lancs
Inv. at £0.12m

® comment.

Simon and Coates explains its
derision to -Jiarfle Miles 33,

IN THE six months to March 31
19S2. Yorkshire & Lancashire
Investment Trust saw gross
revenue less bank interest rise
from £S5.810 to £122,376.

Expenses of £14,520 (£13.695)
and tax of £34,523 (£23,506) left
net revenue of £73,333 (£49,609).

The interim dividend is held
at 0.65p net per share. ■ Last
year’s total of 2p was paid.'- Net
asset value per 25p share is given
as 33. 9p, down from 39.9p.

As predicted in tfae chairman’s
last statement a first dividend of
0.5p net is being paid by Emray,
industrial holding company, for
1981. Pre-tax profits for the
period rose sharply from £97,000
to £201.000 on turnover of £A83m
against £4.59m.

“ Planned growth continues
and -is encouraging enough for
my forecast of a first ever
dividend to . be fulfilled,” says
Mr Lionel Altman, chairman.
" We are determined to maintain
steady growth in spite of the
world trade recession," he adds.

Financial service companies
have been formed into a sub-
group under a new group holding
company _says Mr Al'tinan. He
expects a major -contribution
from this s'ector of activities.

Group investments in ’ Zim-
babwe have great potential, 'he
says, but tight exchange controls
are holding up progress.

The charge for tax rose from
£1.00 Oto £37,000. Extraordinary
credits amounted to £1.000
(£7.000).

Earnings per 5p share rose
from 0.69p to 1.18p and the net
asset value is stated at 9.94p
(&21p) per share.

£0.4m down on the same period bedroom furniture- from

last year and £5 .2m down on the £2.09m ■ to' £Lftm. Dolphin

second hal f of 1981, but this Showers, however, moved ahead
comparison largely reflects the from ma im to £12.11m.
impact of stripping out the The final dividend is un-

Argentine local cs0fts.

After a £20.7m allowance for
taxation profit attributable to
shareholders at £31.7m increased
by 31 per cent over the same
period last year but was £14.4m
down on the second half results.

changed at 2.975p net for a same-
agam total -of S^p. .

Mr -James Gulliver, tihe chair-
man, says that although the com-
pany has passed through another
difficult year, very, satisfactory
liquidity- has been- maintained

and a strong advertising and
marketing programme. : He says
these efforts are bringing success
and sales have improved con-,
siderably in -recent weeks.

While this improvement wtH
no? markedly affect the level of

profits front Alpine Holdings did
not cause., any anxiety: in the- “
market.. despite the 38. per cent '
slide in second half profitability.
While. -improved margins from
double glazing are welcome, the
21 per cent -fall in turnover is ■

installations in the first half of a high price to pay and the twb -
the 7cu rreat, year, present indick- and a half fold decline in second - -
tiobs are that Ifae company, will half on -second, half double -
enter the seeond half with a glazing profits is a disappointing.,
much Improved order.faopk and return from such “favourable

On a current cost basis profit with, present. cash, resources' of _ -a good prospect of a returp to Winter weather; For the second -J

before taxation was £34.3m com-
pared with £35.6m in the first
half of the previous year, and
£4S2m in the second half.

Mr Moore describes the
results as “quite encouraging”
because he says the bank has
maintained its performance over
the second' half of last year.

LBFs performance has been a

major factor in the Lloyds Bank - _ . „ . . . ~ ;

group results. Last year Lloyds operating at a-small profit, after now has^ three sorfd businesses

Optimism at Evered
with trend positive

MANAGEMENT..-., ACCOUNTS . tunities and -securing the finance
show tfiat. Evered 'Holdings, the of Evered ’s future expansion,
engineering group, is - now ' The chairman sayr the group

year running Dolphin showers
has prevented, a sobuss ip -
Alpine's profits: in an increas-
ingly. competitive market the
division- has; — maintained its
share at about 10 per cent at ..
some cost in terms of margins.,.
Tfae loss from- the ' furniture '
division' is no crime in the pre-'
vailing trading conditions., but
even - before - that'- sectors
collapse, . its profits were iiv:

Bank announced a 33 per cent interest, says Mr D. M. Saunders, and is now In an advanced stage adequate and it may now be

irofits to the chairman. Tfae trend is of negotiations for the sale Of case ; of kill- Dr cure. With net’

increase -in pre-tax profits .. . . . ... .

£385. 6m with the international positive and encouraging, with some properties,
contribution jumping from 39 the reconstituted group now At Evered and

per cent to 47 per cent
Yesterday ’. Lloyd’s _ shares
closed lOp down at 395p follow-
ing a 5p drop the previous da)'.

cash of £2.2m Alpine is looking
Company for 1 acqmsitions in the home

Eft 1 ? meml>ers (Metals), an improvement - in improraments ■ sector. That tidy ' -'JL
K®. Profitability has continued into sum. together' with '. a yield of
fi rst quarter of 1982. Certain almost * 14 per - cent provides
hind it and the group trading at Meeting, West Bromwich; June support for the share price of

- _ 57p, unchaiiged; .

ALLIED PLANT

a sufficiently strong level to hope
for a modest profit overall for

Because of a typographical
error, last Saturday’s report of
Allied • Plant ...Group results
quoted the chairman as saying:
** There is no "significant improve-
ment of the conversion rate (of
inquiries) into orders.” This
should have read “There is a
significant improvement. . . .**

YEARLINGS

The interest rate for this
week’s issue of local authority
bonds is 13i per cent, up a
quarter of a percentage point
from last week and compares
with 123 per cent a year ago.
The bonds are issued at par and
are redeemable on May 25 1983.

A Tull list of issues will be
published in tomorrow's edition.

the first six months, he
optimistic enough, on the market
information currently available,
to think' there will be a further
improvement in the second half.

As reported April 30, the
group cut its pre-tax losses from
£646,031 to £290.603 for 1981
There was again no dividend
however— the last payment being
a final of 0.25p in 1979.

Mr Saunders explains that the
appointment of Osman Abdullah
as. chief executive last summer
heralded the formation of a new
management team. With the
opportunity to take advantage of
the finance being made available
from Saudi Arabian sources to
develop the group, he says it is
an appropriate time to hand over
the chairmanship to Mr R. M.
Abdullah, a director, who has
been largely responsible for
identifying new growth oppor-

DIVIDENDS ANNOUNCED

Current

Date • Corre-
of sponding

Total

for

Total
last ’

payment

payment

div.

year

year

A. A. Coal

9511

July 16

72 •

186«*

108

Alpine Holdings

2.98

July 9

2.98-

525

515

Amos Hfutou

5.6

July 20

4.2

8

6

British-Borneo

8.46

—

8. . .

12.8

12.15

Brit Inds Gen Tst ...int

1.5

June 8

1.5

5

Emray

0.5

. —

—

—

C; H. JHeath

9.5

7.4

13.1

10:5

Hunting Gibson

4 -

July 3(1

4

6 •

6

Nar borough (FMS) ifirtg

0.7

June 30

0.7

—

2.11

N American Tst ......int

1.4

—

1.3

— '

5

Northern Inds int

0

July 15

2

•—

.7

W. Run ci man

5

5

7.5

7.5

Thos Warrington

3 .85

July 7

3.57

5.6

4,73

John Williams int

nil

0.5

—

1

Yorks & Lancs Inv ...int

0.65

July 2

0.65

- —

2

Dividends shown pence per share net except

where otherwise stated.

* Equivalent after allowing for scrip issue, t On capital
increased by rights and/or acquisition issues. X USM Stock.
I Gross throughout S Includes bonus of 0.6p. |[ SA.G. cents through,
out *• For 15 months.

In BTR, we care about public opinion.
For example, about reactions to features of

our grow

Such as the thrust of our expansion
programmes. Thecontiguicy ofouracquisitions

in msirmfnrT 1 ity»

in manufacture, technologies or markets. Our
success, even.

And why? The reason is simple.

With encouragement, not cynicism; with
support, not envy, we can do even more for
our people and our economy.

BTR pk Silvertown House
Vincent Sa uare London SYYiP 2PL
*01-5343345

The Bank of Tokyo, Ltd.

Sutherland House,

.3 Chater Road, Central
Hong Kong. .

NEGOTIABLE FLOATING RATE U.S.
DOLLAR CERTIFICATES OF DEPOSIT
SERIES 103 DUE NOVEMBER 19, 1984

Wfe hereby certify that the rate of interest payable
on the above mentioned Certificates of Deposit for the
interest period beginning on Mav 18 . 1982 and ending
on November 18, 1982 is 14“/*% per annum, - ■

Agent Bank:

Morgan Guaranty Trust Company

. HongXong

Public limited Company
PRELIMINARY RESULTS

ji

(on the historical ' cost basis)

Profits from:

Broking operations
Underwriting operations
Other

Operating profit
Exceptional Items
Taxation

Minority interests

Net profit before
extraordina ry ite ms
Extraordinary items _

Nett profit available for
appropriation

Earnings per share

1981/82

1980/81

000 ■

.;-frooo

9,867

5,713

5,432

4,907

1,728

2,006

17,027

.12,626

—

(243)

(6,607)

(5,587)

. ■•.HI)

(89)

10,409

6,707

644

2,845

11,053

9.552

33.6p ; 21. 8p

In 1980/81 the group released deferred taxation of
£2,846.000 relating to a subsidiary- company which
has subsequently been sold. The profit on this sale
has been included in the 1981/82 results as an extras
ordinary item. To provide comparabOftyi the deferred ;
taxation release in 1980/81 has been reclassified as an

extraordinary item and accordingly, the earnings per

share figure for 1980/81 has been reduced from .a

reported 31.0p to 2T.8p per share. •

A final dividend of 9J5p per share fs Teeonwnended
equrvalent-lo l3,S7l4p gross per share.Tptal gross
distribution for the year rs18.7T43ppersham (1980/81
•— 15.0p pershare). • •* , ' J ' • ■;

The Report and Accounts.forlSSI /82 wi}l be available
on 15th June 1982 and the Annual General Meeting
will be held on 7th July tS82L _ ‘ ‘

- F. R. D. HOLLAND; Chairman

• a- !

"if . 5.

U - fr —

K 5 .;-'

■% ..

-3*.

-

CEHeath Public Lmited Cbmpany ;

— CuthbaiBcith Hosa^JSOMinbt^Ldndnu EC3NINR
. -.; - Tdci*OMi01-ffiS3«S‘;

nirrHlNATl6NAfi k |l«i7IMfe BROKERS
REIMSlfiUOKSSKOKEBSAHD : .

" ‘■a:.* •

1 ) m
' L w r -

19 1982

aad Markets

Sfc

Out

UK COMPANY NEWS

23

■

C. E. Heath rises sharply
to £17m: pays 2.6p more

PKQFITS BEFORE tax of C. E.
Heath, the Internationa] " insor-
■; ance and reinsurance broker and
jpnderwrt&jg agent, advanced'

;■ sharply from £ 12.63m to £17. 03m
. -for the 12 months to March 31
.1.0S2 with the second-half cootri-
button emerging s* £9. 67m, cam- '
. pared, with last time's £7.58m.
Stated earnings per 20p share
mse from an adjusted 2I.Sp • to
\ 33.8p and an increased final, divi-
..-idend of 9Bp (7.4p) raises the
net total from ULSp to 13.1p.
c Profits from broking operations
for the fall year were well ahead
at £9 ,87m, against £5.71m, and
-underwriting operations also
^ improved, rising from £4.91m to
£5.43rn. Profits from other
.-■sources, however, dipped bv
278,000 to £1.73m. ' ■

Mr Frank Holland, the chair-
man. said the group should “'do
a -little better ’’ overall • in the
current year. He expects an
increased contribution from
.Australia and Pinnacle, while
Lloyd's ■ operations and the
French business, Groupe Spanks,
should be “about the same.”

Commenting on dividend
policy Mr Holland said the inten-
tion wa s to get a better
f ‘ balanced relationship ” between
ibe interim and final payments
which meant that the group
■would be paying a larger share
at the halfway- stage.

■ A breakdown of underwriting
profits for the year shows the
contribution from Australia rose
from £3.3m to £3.9m. Groupe
Sprlnks was hit by increased
expenses but there were also
increases in commissions and

BOARD MEETINGS

Ifce MiaWfnq companies have notified
d-nas of board me b tin os to tits Stock
Exchange. Such mootings are usually
hold for zho putoose oJ considering
dividends. Official indications am not
available as m wtmtiier dividends am
.merim* or finals and the subdivisions
shown below are based mainiy on last
year's timetable.

TODAY

Interims; AJhed London Properties.
Common Broth au. Dutxlier. Irish Di*- :
niters, Mann Tee. Pentlend Investment
Trust. Redfewn National Glua. Bed-
man Keenan' hwrnational.

Finals: Advance Securities. Ambrose.
Invaumonr Trust. Chamboriln and Hilt.
B-Ono Wrung and Exploration. Explora-
tion Company. Feedback. London Atlan-
tic . Investment Trust, ‘ London end
Northern. London Trust. Whitbread
Investment.

FUTURE DATES

Inte ri ms

Associated Sprayers

Avon Rubber

Carr's MHhng Industries

Cauaton. fSIr Joseph) ... .
Leeds and District Dyers and

Finiefcem

London Scottish Finance Cor-
poration .

Martin- the Newsagent

MoCorquodale -

Scottish American Investment

Stains

FI rate—

Bankers Invostmsnt Trust ...

Jantar

Lancs'

Ltbanon Gold Mining . .

Modem Engineers of Bristol...

Transparent Paper

VonterpOM Gold Mining

Vlakfoniein Gold Mining .. ...

May 77
May 26
June 8
May 27

May S

June IS
Juno 1
June 1
June 16
May 25

June 15
May 27
May 2*
June 8
May 27
June 1
June 8
June 8

fees and a “marked improve-
ment " tn credit control and cash
Row resuiting in an improved
contribution of some £200*000.--.-
The Lloyd's operation;; con-
tribution fell by around £300,000.
Including agency fees, profits
were £377.000. The "Pinnacle
business increased its contribu-
tion from £195,000 to £653.000-
The figures "wore helped by the
weakness of the pound, which
added £2m to brokerage income,
between £400,000 and £300.000 to
investment income and £300,000
to underwriting profits.

Tax took £6.61 (£5.5Qm) and
after minorities of £11.000
(£89,000) and an exceptional
debit of £243,000 last time, the
net surplus, came through at

John Williams deficit
rises with bad weather

SEVERE BLIZZARDS affected
-the first six months results at
"John Williams of Cardiff- A
: significant proportion- of the
ilosses, winch increased from
' £681.400 to £794,900, was
. suffered in December and
; January when the blizzards in
South Wales made trading con-
' ditions even more harsh than
; -the directors had expected.

The interim dividend for the
period to Harch 51 1982 has
been passed — the - previous
interim was 0.5p. Last year a
total of lp was paid after pre-

- Tax losses of £1.2?m (profits

- £665.535) on turnover of £19.62m
' ' f£25.18m).

Lasses per 25p share were
-‘■shown as mine from 7.99p to
' -lO.OSp. There was no charge for
: tax this time after a previous
r rcerdit of £62.000.

With the midyear results the
group has also announced the
sale nf one of its steel stockhold-
ing subsidiaries. Paisley based
J. R. Forrester and Co, to Brown
and Tavsf, a Rteel-and steel and
plastic products stockholder, for
£1.3m cash.

Forrester turned in losses of
£154^90 for t!he year to the end
of September -when its ' net
tangible assets were about £1.8m.

Mr Douglas Rae, Brown and
Tawse chairman, said later that
the acquisition would consider-
ably strengthen bis company's
involvement with steel plate and
sheet in the East of Scotland.

Currently Brown and Tawse’s
main business in Scotland comes
from supplying large quantities
of steel .for: the. -onshore oil in-
stallation in tiie East.

L. k

HBarFab
Reinforcements

AZfec&Hef «MsSMt«enilHfa(

Head Office: Alma Street Smethwick, \Aferte% W.Mfcjlands B662RR
Telephone: 021-558 2111. Telex: 33S461.

£W.41m, compared with £6.71m.

Added to this were extra-
ordinary credits of £644,000
(£2. 85m) which lifted the avail-
able profit by £1.5m to £11.05m.
.. to 1980-81 the group released
deferred tax of £2. 85m relating
to a subsidiary company which
has subsequently been sold. The
profit from this sale has been
included in the ' 1981-82 results
as the extraordinary item.

To provide comparability the
deferred tax release of the
previous year has been reclassi-
fied as an extraordinary item
and accordingly, earnings per
share for that year have been
reduced from a reported 31p to
21.8p.

.. See Lex

Warrington
at

£613,000

AFTER A profit of £92,0(10 on
the sale of surplus land at
Thomas Warrington & Sens, pre-
tax profits almost doubled from
£312,000 to £613,000 for 19S1.
Turnover of this general build-
ing and public works contractor
moved ahead from £9.1m to
£10.36m. '

Profits' for 1982 are expected
fo be at least comparable to
tbose of 1981, say the directors.

The. total dividend has been
raised from 4.7346p to 5.6p with
a final of 3B5p - net Earnings
per 25p share are given as lower
at 12.38j)_. against : l&13p,

There was a charge for tax
this time of £241,000 against a
previous credit of £233,000. This
was an exceptional credit arising
mainly from the writing back of
deferred tax.

• The balance sheet shows an
increasingly strong position, say
the directors, while liquidity has
markedly improved since the
year end.

SPAIN

May IB • '

Price

’4

+er—

Banco IWbao ....

341

-3

Banco Central

• 333

-2

Banco Extarior

302

Banco

310

Banco Ind. Cat

114

Banco Santander

324

-1

Banco Urqouo

202

-2

Banco Vizcaya

355

—3

Banco Zaragoza

248

+*

Dtagado* -

140

-6

Eepanoie Bnc

60

Facsa —

64.7

-1.6

Gal. Praciadoa

38

Hwtrote

64.7

-2.5

Iberduoro

52.7

-0.5

Fatroieoa :....

88

-2

Pwrotfbar

39

Sogafisa -

6

Telefonica

70

-1.2

Union Bad

65

-1

DUPORT GROUP

Results for the year ended 31 January 1982

■ During the past financial year the Group has been effecting a strong recovery ,

following its major financial reconstruction in April T981.

■ Following the loss before taxation of £579.000 reported for the first half year,
the Group returned a profit before taxation of £254,000 in the second half.

■ Actions to reduce our cost base and reshape loss making businesses
continued with the result that £460.000 of redundancy costs (of which £226.000
was incu/red in the second half) has been charged in arriving at the trading results
for the year and a further £1 .579,000 has been included in extraordinary items.

■ * Extraordinary items have beefi credited with £3,045,000 from provisions no
longer required in respect of steel interests.

■ In view of the need to continue to reduce borrowings and bearing in mind the
interest relief presently obtained on the subordinated loan stock, the Board has not
declared a dividend on either classes of preference shares or the ordinary shares.

Summary of figures

Profit/loss (-) on trading
Interest

Dividends from trade investments
Profit/Loss (-) before tax
Taxation

Extraordinary.items

Net profit/loss (-) for the year

1982

£’0OO

1,240

-1.620

56

-325

8

1.771

1.454

1981

£-000

-9.537

-4,533

161

-13.909

-64

- 44.312

-58.285

■ ' The reorganisation of major areas of the Group is ^^"Uing birt the benefits
will not accrue until later this year. Meantime the first half of 7982/3 has suffered
from a further decline in demand in some important markets of the Group and from
the disruption associated with its restructuring. However, taking the financral year
to 3.1 January 1983 as a whole, we. believe that we can consolidate on the progress

made in the past year. . !■

PRODUCTS FOR THE HOME
AND ENGINEERING

Jump to
£2.5m
at Hinton

FOOD AND DRINK retailer and
distributor Amos Hinton and
Sons saw profit before tax jump
to £2.5m for the 52 weeks to
March 8 1982 against £L3m in
the preceding 53 weeks.

Sales rose to £101 .31m exclud-
ing VAT, against £90. 15m. with
a 5 per cent increase in volume.

A higher final dividend of
5.6p net per share (4.2p) ' lifts
the total to Sp_ (Bp). Stated
earnings per lOp share were
40.53p, compared with 19.35p.

Tax took £266,000, against a
£747.000 credit, for a profit after
tax Of £2.23m (£2.05m). Extra-
ordinary credits came to £31,000
(£190,000).

• comment

Hinton has been able to add a
full pofrtt to pre-tax margins. A
121 per cent rise in sales has
worked through to almost
doubled profits. The story is a
rise in volume of about 5 per
cent with virtually no physical
growth while, at least in the
earlier months of the period,
Hinton was able to effect repairs
on its badly damaged gross
margins. The other discernible
factor is the return to profits of
the discount stores which have
been revamped as small store
units. The discount stores made
a £190.000 loss in 1980-61 and last
year there was a positive contri-
bution. Bat tofaile Hinton has
been able to take a substantial
pace forward in 19S1-S2 the
current 12 months looks a little
dess promising. The pressure is
back on profit margins. Both
Fine Fare and Asda are mean
competitors and all eyes are on
Allied Suppliers and what might
happen next. Finally Tesco's
round of price-cutting could well
have a knock-on effect though it
is not big in the region- So
Hinton win have to rely on more
physical growth. One new store
has already opened, two snore
have been commissioned and
others are in the pipeline. Also
more emphasis on fresh food,
with its new distribution centre,
could help overall gross margins.
At Slip the P/e is 14.3 (fully
taxed) and yield is 3.6 per cent
The family holds the reins.

Index-linked units from Lazards

MERCHANT BANKERS Lazards
are launching Britain's first
index-linked unit trust An
unauthorised fund being offered
to pension funds (including
tbose managed by life insurance
companies) and charities, it is
designed to offer a return of at.
least 4 per cent over retail price
inflation.

The Lazard Index-Linked
Mortgage Unit Trust will invest
in individual residential and.
commercial mortgages arranged
by an independent company.
Index Linked Mortgage and.
Investment.

1LMI has already been operat-
ing for some three years, and
has arranged mortgages totalling

around £5m, funded by various
institutions. Under the new
arrangements the previous fund-
ing commitments will be
honoured but not extended, and
the company will from now on
act exclusively as an agent for
LILMUT.

There is claimed to be a large
demand for index-linked mort-
gages, which ti.MT has not so far
been able to meet in fuJl because
of a relative shortage of invest-
ment funds. Personal borrowers
pay 5} per cent over and above
The .increase in the retail price
index, but the indexed nature of
the borrowing means that initial
Instalments can be much lower
than with normal building

society-type mortgages.

Up to 40 per cent of the unit
Trust's funds may be invested in
index-linked commercial mort-
gages, and because the commer-
cial rate will be higher, the real
return to unitholders may be as
much as 44 per cent.

For Lazards. the new unit
trust will be an addition to a
range of exempt unauthorised
trusts which includes a £170m
property fund. It is designed to
give pension funds an attractive

linked to the retail price index,
and not to any ether index such
as a residential house pnee
index. For las purposes the
return will consist of income and
capital repayments, and will not
include any element of capital
gains.

ILMI. based in Fleet. Hants,
will be responsible for processing
mortgage applications on behalf
of the unit trust Its present
terms for residential mortgages
include a relatively high maxi-

alternative to index-linked gilt- , mum income multiple of 3.5

edged stocks, which at present
give a rather lower real return
— of 3 per cent or less.

Lazards emphasise that the
return on the units will be

British-Bomeo static at £l.lm

PRE-TAX PROFITS or British-
Borneo Petroleum Syndicate
were unchanged at £1.09m in the
year to March 31 1982. This
investment bolding and dealing
company is increasing its final
dividend from 8p to S.45p for a
total up from 12.15p to 12.8p.

Dividends and interest on
investments contributed £1.02
compared with £964.000. Profit
on realisation of investments,
short-term interest and other
income amounted to £390,000
against £240,000.

British Inds.
Investment

For the six months to March
31 1982 gross income of British
Industries and General Invest-
ment Trust fell from £214,900 to
£209,800 and net revenue before
tax from £174,600 to £166.000.

The pre-tax result was struck
after management expenses of
£3S^OO (£34,700) and loan capi-
tal interest of £5,600 (same).
Tax took £64,200 . (£69.000)
leaving the net balance at
£101.800 (£105,600) and the net
interim dividend is held at 1.5p
costing £72.048. Last year’s total
payment was 5p.

The. net asset value per 25p
deferred share is stated at
164.8?5p, compared with 168.7Sp
at September 30 1981.

Administration expenses

increased from £106,000 to
£111,000 and interest on loans
this time was £104.000. Con-
sultants fees totalled £101,000
(nil). After tax of £56.000
(£112.000) and tax attributable
to franked investments of
£292,000 (£266.000). stated earn-
ings per lOp share advanced
from 16p to 16.6p.

Tbe directors say the com-
pany's Canadian subsidiary'
retains its interest at Meekwap
and in the Ochre area, both in

Alberta, and the Boundary Lake,

British Columbia. During the
year, a farm-in well was drilled
and abandoned on its acreage in
tbe Boundary Lake area.

In tbe U.S. with the advice of
consultants, equity interests in
some ot the smaller listed oil
exploration companies have been
acquired at a cost of £1.05ra and
a direct participation in oil pro-
ducing properties in Wyoming
has been acquired at a cost of
£350.730.

rather than the more normal 2.5
times . annual income, but the
maximum advance is normally
limited to two-thirds of the value
of the .property.

Runciman

prediction

Reed orders better

HEALTHIER ORDER books are
reported by Austin Reed Group,
the men's and women’s wear
retailer and manufacturer. And
Mr Barry Reed, the chairman,
says in bis annual report that at
the end of the first quarter of
the current year, sales m «he
group’s retail shops are running
some 12 per cent ahead nf a year
ago.

He says the group remains
interested in expanding its
national network: of shops when-
ever possible. The latest
brandies at Kingston-upon-
Thames, Surrey. Tunbridge
Wells, Kent, and Perth, Scotland,
have done well, and next month
another new shop will be opened
in Plymouth.

Options, tbe women swear
business, is proving a most
successful development, and good
results have been achieved in
tbe two new London shops and
at Tunbridge Wells. He says the
board is looking forward to open-
ing at least another eight
branches in The course of the
next two seasons. Together with
the Country Casuals concessions,
he says the immediate sales
target for womenswear is £5m.

Following an unsuccessful
appeal against a sevenfold rent
increase, the group has been
forced to close its Dublin busi-
ness. Tbe shop has traded satis-
factorily for 10 years, but Mr
Reed says such an increase in
the rent was “ untenable. "

THE MIDYEAR prediction by
the directors of Walter Kunelman
and Company that the group's
pre-tax profits for 19S1 would be
below these of the preceding
year has been borne out.

Despite an advance in turnover
from £47.07m to £54.72m profits
before tax of this shipping,
insurance and security group
declined over the year by
£205.000 to £2 .32m.

After six months, trading
profits were marginally ahead but
in their interim report the
directors warned that, with the
continuing absence of any
general economic recovery,
coupled with major redundancy
costs in both the security and
shipping divisions, taxable profits
for the full year would not match
those for 1980.

They added, however, that they
expected the dividend for the
year to be maintained on the
enlarged capital — 1.1m shares
were placed with institutional
investors in September. This too,
has been borne out. a final of 5p
making a same-anain net tola] of
7.5p.

Tax took £688,000 (£lm) and
minorities £377.000 (£233,000)
leaving the attributable surplus
slightly higher at £l-64m

'A not unsatisfactory performance
in adverse trading conditions”

Mr. DickPuttick,

Chairman, reports, .

The year under review has not been an
easy one tor your company which in com-
mon with most companies continued to
■feel the effects of recession in this country
and overseas. New business to replenish
our order books was difficult to obtain
and in the construction sector our share
of such building and civil engineering
work as became available had to be won
in conditions of keen competition — a
situation in which most companies in the
construction industry find themselves
today.

We have, however, benefited from the
wide range of our group activities at home
and overseas and our diversification into
specialist operations and the contribu-
tions that these have made to earnings.

While the figures must be considered
in the light of inflation, we completed the
year with historic profits slightly up on
those of the previous year. This, I feel sure
you will agree, is a not unsatisfactory per-
formance when measured, against the
adverse trading conditions in which we
have operated.

Accounts *

The turnover of the group for 1.981 , .in-
cluding our share -of associated 'Coriv
panies, was £575 million compared with
£520 million in 1 980.

Profits before taxation were £24.87
million, a marginal increase over the
previous year. These profits were also
affected by a loss of £4 million, being the
group’s share of the loss suffered by an
associated company on a road contract
in Trinidad. Substantial claims continue to
be pursued on this contract.

After deduction of taxation and
minority interests there remained a
balance of £1 4.6 million and after adding
extraordinary items totalling £6.0 million.

the profit available to Taylor Woodrow pic
was £20.6 million. Last year the extra-
ordinaiy items were £20.2 million sub-
stantially the whole of which was the
release of deferred taxation on stock relief
for the years 1 975 to 1 979.

The board has recommended a final
dividend of 13.157p per share, which
consolidates the special payment of 3p
per share paid, last year to mark the
Diamond Jubilee of the group. Adding the
interim dividend of 3.1 5p, this makes a
total of 16307p per share for the year,
which matches the payments made for.
1980. •

A reduction in expenditure on fixed
assets and properties combined with the
proceeds from sales of fixed assets
contributed to a strong cash flow, so that
we ended the year with liquid funds up
£1 9 million at £53 million.

Long-term contracts continue to be an
appreciable part of the group's business
and therefore it is still important to judge
•results over a period of years rather than
over one year alone.

Generally

The restricted volume of new work avail-
able in this country for our construction
and trading companies and the conse-
quent limitation on profit margins, has
caused us to continue to Jook for pro-
fitable opportunities overseas. In this
respect during the year we extended our
property investment interests in Australia
and bur housing and property operations
in America and we^rre -planning to step
up our opencast coal mining operations
in that country. - • - . -

yVe wii! continue our policy of
searching for suitable new business
prospects in this country and wherever
else they are to be found in any part of the
world. ‘

It is, I think, true to say that perhaps

the greatest assets of any company are
not those which appear in the balance
sheet but rather the men and women — or
team members as we call them —who
make up the work force, for a company
can only be as strong as the people in it.
In Taylor Woodrow we are fortunate to
have teams of men and women through-
out the world who are dedicated to their
job and without whose efforts the results
we achieve would not be possible.

The policy of the board has always
been to do what it can to assist our team
and in this respect we are proposing the
introduction of a savings-related share
option scheme which wjll provide a wide
range of team members with the
opportunity to acquire shares in the
company and thus give them an added
interest in the affairs of the company.

_ Our thanks and appreciation are
again extended to the many clients who
are entrusting us with their.projects and to
the various professional people, including
consulting engineers, architects and
quantity surveyors, for their assistance
and co-operation in the carrying out of
this work. To our shareholders go sincere
thanks for their loyalty and support over
the years.

Taylor Woodrow is a free enterprise
company. Our business is development
and construction. On the one hand we
help create wealth in communities around
the world through our own projects. On
the other, we contribute to the well-being
of this- and other countries through the*
taxes we pay — which go towards social
services, communications, health
services, education, housing and
defence: ■

. But whatever- the .circumstances we
remain firm in our resolve to pursue the
ideals of integrity, a square deal arid free-
enterprise for the benefit of our
teamworkers, our shareholders, our'
clients, the community and our country.

TURNOVER

£ million
600

PROFIT BEFORE TAX

PROFIT AVAILABLE TO
TAVL0R WOODROW pic
(inctodiwj- extraordinary dans)

NET EARNINGS PER SHARE-
' (Including extraordinary items)

GROSS DIVIDENDS PER SHARE

£rin»ion

P7TJ

30

24

IB ■ ‘

m

Fiji

1

$

72 73 74 75 76 77 78 79 B0 81 72 73 74 75 76 77 78 79 fiO 81

72 73 74 75 76 77 78 79 80 81
‘ 960 'ncJudes the refease at €20 63 m
(referred taxation on stock relist lur the
years. *975(0 1979

72 73 74 75 76 77 78 79 80 St

73 74 75 76 7 7 78 79 80 81

-worldwide

-OPTIONS EXCHANGE

Thisadvertiserriem Is issued in compliance with the requirements of
the Council of The Stock Exchange. ■ -

ft does not constitutes invitation to the puttie to subscribe for
or purchase any securities.

Schrafer Sterling Wtoney Fund

Incorporated with Kmfted RabMity in Jersey Channel Islands

Authorised

£

100 Management Shares of £10 each
1 00,000 Unclassified Shares of Ip each
of which them were in issue at
12th May, 1982:

as Participating Redeemable Preference
Shares of Ip each

as Nominaf Shares of Ip each

Issued and
fully paid
. £

100.00

19,827.36

.31.13

100.100

19,956.49

Application has been madetothe Council of The Stock Exchange tn London
for Participating Redeemable Preference Shares of the Raid to be admitted
to the Official List Parficulars of the Fun dare available in tbe Extei Statistical
Service and may be obtained during usual business hours (Saturdays
excepted) up to and including 2nd June, 1982 from:

Bankers to tfie Introduction

J. Henry Schroder Wagg & Co. limited

120, Cheapside, London EC2V 6DS

Brokers to the Introduction

Cazenove&Co.

12,TokenhouseYard, London EC2R 7AN

19 th May. 19S2

S.F.E. INTERNATIONAL N.V.

U.S. $70,000,000

Guaranteed Floating Rate Notes Due 1988

Guaranteed by

Societe Financiere Europeenne
- S.F.E. Luxembourg

In accordance with the provisions of the Notes,
notice is hereby given that the rate of interest for
the six months J9th May, 1982 to 19th November, 1982
has been fixed at 14# per cent per annum and
that the coupon amount payable on coupon No. 2
will be U.S-S376-94.

♦

The Sumitomo Bank, Limited

.Agent Bank

M. J. H. Nightingale & Co. Limited

27/28 Lovat Lane -London EC3R 8EB

Telephone 01-621 1212

P/E

. '.39B1-S2
Hibh Low

Gross Tiold

Company '—-fines Change dw (p) %

Fully
Actual taxed

-130

TOO'

Ass Brit. Ind. CULS...

128 •

- 1

10.0

7.B

—

—

. '- 7?

62

Airsprung - ..

72xd

—

4.7

6.5

11.4

15.8

■33

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42

—

4.3

10.0

3.6

8.1

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137

Bar dor. Hill

205

+ 1

3.7

4.7

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107

IDO

CCL 11 pc Conv. Prof....

107

—

15.7

14.7

—

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i-2S5

240

Cind<co Group

265

—

264

ICO

10.7

12.0

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61

Deborah Services

62

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:t31

97

Frank Horsell

123

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39

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75

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46

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-54

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93

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99

—

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100

Isis Conv Prel

109

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Jackson Group

101

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69

3 2

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108

James Burrough

240

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Robert Jenkins

Scruttons "A" .......

240

+ 2

31 3

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51

67

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82

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. ~263

212

W. S Yeates —a

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-Puces now available on Prwtal page 481*6-

Financial Times >V^teesday I\$ay:19 1$S2

Companies antf Markets

Bros AND DEALS

'GOU> C

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14

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LONDON TRADED. OPTIONS

Dawn raid fails but
bid for Bemrose coi

Bunzl, the paper and packaging
group, is to continue with a
£13-8m bid for security printer'
Bemrose Corporation despite the
failure of a “ dawn raid ” on die
Bemrose's shades yesterday.

The Bemrose board is ex-
pected to meet today to consider
its reply to the surprise Bunzl
bid though it yesterday advised
shareholders, through its finan-
cial advisers KJeinwort Benson,
to take do action. . Kieinwort,
Benson said this was befieved to
be the first dawn raid whtich bad
failed to net any shares of the
target company.

Stockbrokers Hoare Gevett
failed to pick up any Beznrase
shares despite their offer for up
to 2.6Sm ordinary shares at 120p
each made in the opening
minutes of stock exchange trad-
ing yesterday, Bemrose said.

The reason for the failure of
the offer was a higher bid made
by stockbrokers Grieveson,
Grant, acting for an unnamed
client At one stage yesterday
Bemrose's shares were 53p up at
129p while Bunzl slipped 5p to
lSlp.

** I understand Bnnzl's bid was
totally unsuccessful and they did
not pick ug any shares,” said
Bemrose chief executive Mr

David Wigglesworth. “It seems
to be a reajli extraordinary way
of going anout business. If we
are interested in a company we
talk chairman to chairman. " -

Bunzl followed up its early
morning cash bid with an offer
of 120p nominal of Bunzl 1125
per cent convertible 1 unsecured
loan stock 1992-94 but said it
remained .in the market for the
1.68m ordinary shares for cash.

The new loan stock will carry
the right of conversion into
Bunzl ordinary shares at 200p
per share from 1986 to 1992
inclusive. Any unconverted offer
represents BunzI’s first arte mol
to expand its activities in tfie
UK Following the recent re-
covery of Buuzi’s fortunes under
its new managing director Mr
James White it bad been expand-
ing strongly into paper distribu-
tion in the U.S. through

acquisitions.

Bunzl has reduced its

depence on cigarette filters,
though they still remain

important, and disposed of a
number of unhappy acquisitions
over tbe past 2£ years to develop
its merchanting and distribution
of pulp, paper and paper pro-
ducts and the manufacture of
specialised papers and packaging.

It made little changed pretax
profit of £11.59m last year on
turnover 45 per cent up at
£345.65m.\/

Bemrose. is a leading printer of
bank cheques,- plastic credit cards
and other security items as well
a<; calendars, diaries and flexible
packaging. Bemrose more than
tripled pre-tax profits to £2.37m
last year bn. marginally higher
turnover .of 149.4m.

Bunzd is -primarily interested
in Bemrose's -flexible packaging
activities which are more exten-
sive than Bunzl’s own operations,
according to Mr Ernest
Beaumont, chairman of Bunzl.
The two companies are probably
fifth and seventh respectively in
their field. Together they would
be number three, Mr Beaumont
stated.

N. M. Rothschild, which is now
acting for Bunzl, said it expected
to issue offer documents within a
week. S. G. Warburg, which was
financial adviser to both com-
panies, said It had withdrawn
prior to the bid to avoid a con-
flict of ihtcrests.

On the stock market shares of
Bemrose closed at 129p up 53p
while shares in Bunzl fell Sp to
ISOp.

Harmer
offer for
remainder
of FIT

May 18. Total Contracts >,126 CaJie 680,' Puts'
| • duly r "Oct." "■ ' -

■ • -r--

BP ic}

BP.tCt.C

BP'lc*

BP |p) : ;
BP IP).
CU (C> ‘
CU Id

260 ; -62 r
300 f. 26 )

530 l.-'-.lO. i
.280 j' 6. j
300 12

‘ 70 !

.6-1 S4-.[

>!

101- 1 Ml J

Menzies tops up Lonsdale terms

Harmer Securities, a sub-
sidiary of tiie privately owned
Rowlandson Group of investment
and property companies. Is con-
solidating its 14-year relationship
with the quoted Finance and In-
dustrial Trust by offering 30p
cash per share to lift its 64 per
cent holding to outright owner-
ship.

FIT. which retains some 650. .
mostly private, shareholders, has
been quoted recently at about :
21p before a sudden lift to 25p ,
early last week prompted a
suspension of the shares at 25p
on May 12.

Since none of the FIT directors
Is independent of Harmer, which
is headed by Sir S. Graham Row-
landson, the minority share-
holders have been advised by
Sheppards and Chase which
announced yesterday that it con-
sidered “ the terms of the offer
are fair and reasonable having
regard to tbe relevant circum-
stances.”

FIT comprises a mixed port-
folio of largely provincial
properties which are valued at
£900.000, or 34. 9p per share, and
a leasing and finance arm whose
overheads are understood to be
entirely supported by Harmer.
FIT, indeed, has no employees.

Cans. Gld ie)j ' 390
Cons, GM foil . 4eo
Cons, Qld (c»j 460
Con*. Gld lpj* 390
Ctldh lc) 70 |

CUda.: (C) I 80
-Ctlds- fc). V . SO
(kids. (cj. .! ■ . 100

GEC-ici " .' i

oec <oi 'j»o

■GBC.ICJ ■»: 900

GEC (p) . • BSD

GEC (p) -j , 900
Gi^d Met, tor 280
Gf'd Mat.4ri 200
Gr*d Met: w 220

id to) ■> soo

ICl -(C) | ' 330

IC1 (0) i 330

ICl (pi ’ j • 360

Land. Sep. toV. i 280
Land See. tps 300
Land Sac. 'ey 330
Land.Seo, tcif .360

360 i 50

21 22 -i 100

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Shell (O
Shell to)
Shell to)
Shell <p)
Shell (pi

NO PROBE

John Menzies was hoping last
night to have dispelled "the un-
certainties surrounding its bid
for Lonsdale Universal, the
office equipment and printing
group, by making an increased
offer of 67p per share which
Lonsdale has agreed to recom-
mend and which hds already
allowed Menzies to lift its voting
stake in Lonsdale to 41.4 per
cent

At the same time though. Mr

keeping open the options of his

cations Corporation (BPCC),
which last week made a com-
petitive bid for Lonsdale of 66p
per share and now holds 10-88
per cent of its ordinary shares.

Mr John Menzies, chairman
of the Edinburgh-based news-
paper distribution and
stationery group, said discus-
sions with Lonsdale bad thrown
up additional information
justifying a higher bid. The
company's sales of a loss-making
engineering subsidiary - had
especially added to the attraction

of Lonsdale. The new Menzies
bid values Lonsdale at £6.3m.

The first preference shares
carry 20 votes each as against
2 votes for .each ordinary share,
which accounts for the 41.4 per
cent voting power npw enjoyed
by Menzies. Mr Menzies said last
night that he anticipated receiv-
ing acceptances to the new bid
very quickly, in the absence of
any renewed offer from Mr
Maxwell.

Mr Maxwell's intentions,
meanwhile remain unclear.

The merger of Hillsdown Hold-
ings and certain assets of
Imperial Group is .not to be
referred to the Molopoties ' and
Mergers Commission.

Barclays (c) !
Barclays <c> (
Imperial ici.l
Imperial to) f
Imperial rc>
Imperial to)
Imperial <pi
Lasmo (cl
Loo r ho to)
Lortrho ipi
LonrhoipJ
Lonrho (pj

P&O'.to)'. ;
P AO to) |.
RacaJIcr
Racal (c)

Raaal (p) •
Racal (p)
RTZto)

Vaal Rfs. (c)

280.

14.

*

26

34 ■ ...

—

:282p

300 .

7

. 28

. ' 19_

— 1 •

24 . !

. —

1 1-99

330 ’

2

—

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—

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—

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140 t

ai

2

24

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28 |

—

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ISO j

71 2

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UW

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1548

. This advertisement is issued in compliance with the requirements of the
Council of The Stock Exchange

MILES 33 PLC

(Incorporated in England- under the Companies Acts 1948 to 1976)

■ Number 1276966

Wolseley-Hughes’ U.S. deal

SHARE CAPITAL

BY RAY MAUGHAM

Authorised

1,000,000

Ih 10,000,000 ordinary shares of lOp each

Issued and to be
: Issued fully paid
£ r
210,000 -.

■ ‘ : ■ \ -.j. . ;*■*
~b>'

WOLSELEY-HUGHES. the beat-
ing and plumbing equipment
distributor, has agreed to buy a
similar business. Ferguson Enter-
prises, of Virginia, UB. for
£17.1m. Tbe deal will be largely
funded by toe placing of 3m new
ordinary Wolsedey-Hughes
shares, representing almost IS
per cent of the enlarged capital,
at 345p per share to raise £l0.1m
net of expenses.

At the same time, toe group
has agreed to sell its agricultural
driers and industrial heater sub-

sidiary Benson Heating, formerly
known as Nu-Way Benson, to its
management headed by a main,
board director, Mr John Wheeler,
for a consideration of £750,000
The proposed U.S. deal will
constitute Wolseley-Hughes’ first
move outside toe British market
and will establish the group in 54
locations in toe south and south-
east of America. Fergusoa is to
buy 12 distribution outlets which
are currently leased to Ferguson
by various partners . for an
aggregate sum of S3. 9m.

Headed by Mr David Peebles.
Ferguson has- opened 34 outlets
in tlhe last six years. Its sales
have doubled to Sl43.4m over
the past five years, and profits
before tax have expanded from
$2.7m to S4.3m.

Sales last y ear grew by over
12 pear cent but taxable profits-
slipped by almost 15 per cent
and, hit by the UB. economic
downturn, turnover in the first
quarter this year is down on the
comparable months of 1981.

In connection, with a placing by Simon & Coates of 700,000 Ordinary shares of lOp
each at 105p.per share. -application has been made to,' the. Council of The. Stock. Exchange
for the grant of permission for the whole of the issued, share capital of Miles 33 PLC to
be dealf 'iu on the Unlisted Securities Market. A proportion of the shares being placed
are available to the public through the market It is emphasised that no application; has
been made for these securities to be admitted to official listing. Particulars relating to
tbe company' are available in the Extei Statistical Services and copies of the Prospectus
may be obtained during normal business hours on any weekday: (Bank Holidays and
Saturdays excepted) up to and including the 2nd June 1982'from: .

SIMON & COATES ' '

1 London Wall Buildings, London, EC25t 5PT

COMPANY NOTICES

RESIDENTIAL PROPERTY

FIRST INVESTORS
AMERICAN TRUST
{Liquidated)

The liquidation ol the above invest-
ment fund was closed on May 21.
197*. )t being reminded that a heat
liquidation dividend of USS4 per
share had been paid out on March
22. 1974 end the. final dividend of
USS0.134 per share was paid on
May 28. 1974.

Towards the end of 1975. acting
on account ol the lormer share-
holders ol the Company and lor
protective reasons, the lormer
liquidators joined in two class
actions and. therealter. ware
remitted several amounts.

By civil judgement of April 1. 1981.
the undersigned was appointed
sequestrator by the District Court
of and in Luxembourg with the
assignment to manage these funds
end to distribute them to the
former shareholders.

For the purpose ot distributing ibo
amounts available, the sequestrator
asks the lormer shareholders to
assert their nqhts by indicating
the name and address of the
authorised trustee to the under-
signed:

Mr Georges Kioes
c/o Compegnle Fiduciaire
PO Box 351
2013 Luxembourg

The Sequestrator

MDSBANDSE IMUEWR
BEDHLJVENB.V.
formerly VAN DEN BStGfrTS
EH JURGSCFABTOBCEN N.V.

. INTERCOM .

SOCIETE INTERCOM MUNALE BELGE
DE GAZ ET D'ELECTRICITK

Socuttt Anonymc

place du Trine 1. EruinHi. Belgium

5J5% Preference and Ortfrnary’A’ sub-shares
issued by N.V. NaMandadi AtfcnUstmie-
enTrusdantooc

Dividends tor 1961 of (R0.66) and

13.5325% (R.CA09Z75) respectively yvtfl be
peid on and after 18th May 1982. To obtain
these dividends, cartHhatBS rrxjst be listed
on forms obtainable from, lodged with for
marking, and left for five dear days for
examination by one ol the following :

Midland Bank pt Slock Exc hange
Services Department, Manner House,
P»pya Street London EC3N 4DA
Northern Bank Lhnilad, 2 Waring Stratf,

Ailed Irish Banks Unwed, Securities
Department, 3M Foster Piece. Dublin 2
Clydesdale Bank PLC, 30 St -Vincent
Place. Glasgow.

from which, banks to ter details of the
dividend may. be ofatamed on and attar
18th May 1982. .

N.V.NEDERLANOSCH

AOMNSTRAHE-

ENTRUSTKANJOOR

NOTICE OF

ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN that the
annual general mcetfns of the share-
holders will be held on Friday 21st
Mar 19E2 at 1 1 a.m. at the registered
Office of the Company, place du Trhne
1. Brussels. Belgium.

AGENDA

1) To receive the reports of the Board
ot Directors, the •• Collese ol Com-
missures " and the Company's
Auditor.

2) To approve the balance sheet,
results accounts, and the appropria-
tion ol results for tbe financial vear
ending on December 31st 1951.

3) To grant dtscharoo to the Directors,
the “ Commlssaircj " and the Com-
pany's Auditor tin accordance with
article 79 at the Belgian Companies
Act).

4} To elect Directors and " Commis-
salres."

Note;

Holders of shares entitled and wishing
to attend or be represented at tbe

meeting should. ' at least si* dsvs
before the dav fixed for the meeting,
deposit a certificate of their bolding
bv an authorised depositary at one or
the following banks:

—MIDLAND BANK. International
Division. P.O. Box 181. 60 Grace-
church Street, London. E.C.3. -
— EANQUE BELGE LIMITED,. 4.

Blshopsgatc. London. E.C.2.

— EANOUE DE PARIS ET DES PAYS-
BAS. S.A., 33, Throgmorton Street.'
London. E.C.2.

—BARING BROTHERS AND CO.
LIMITED. 5B. Lcadcnhail Street.
London. E.C.3.

— HILL SAMUEL AND CO LIMITED.
100. Wood Street. London. EC 2
Thereupon an admission card ■ urill
be Issued to them.

A member of the Company entitled
to attend and vole may appoint «
prow or proxies to attend, and on
a poll to vote, in his stead. Such
proxy must be a member.

Conies or the accounts' and the
reports In French fand resumes in
English) lor 1981 may be obtained
horn rbc above-mentioned banking
establishments.

London Aerator Office.
Untever House. Bfocfcfates,
London EC4P4BO.

18th May 1982 -

BRITISH BORNEO PETROLEUM
SYNDICATE, P.L.C.

PERSONAL

NOTICE IS HEREBY GIVEN that the
TRANSFER BOOKS of the aborc Company
will be Closed from 5th to 18th June.
1982. both days Inclusive.

By Order Of the Board.

RUSSELL L1MEBEER
Secretaries

Registered Olfcc:

Pembroke House.

40. City Road.

London EC1Y 2AD.

18th May. 1962.

TAYLOR WOOOROW INTERNATIONAL
FINANCE 8.V.

ELMYR de HORY FAKES
own a magnificent
Monet, Renoir, Van Gogh,
Toulouse Lautrec

Private collector has for sale these
signed unique oil paintings by the
master forger ol our own time, iho
late Elmyr de Hory.

London 01-485 4828

Front in

Direct to the sea (Oeressund)

Indoor swimming pool 12x4m with sauna
Wintergarden

Stables 4 cars Private £365,000

indoor Swimming-Pool.

Far further details ' contact:

PETER SOLBECK -
AUNGSTED STRA MDVE J 203
2960 - RUNGSTED
DENMARK

Tel: (02) 86/04/46 (home)
(02) 94/35/55 (office)

Mr'

SWITZERLAND
AIGLE + VILLARS /

The Annual Report and Accounts lor the
year ended 3Tst December. TS5I ol Hie
above Corn nan v and those af Taylor Wood-
row pic lure been published and are ■
available from the eBlees ot Hoare Govctt TOKYO. Osaka. Seoul. Taipei and Far East

TRAVEL

FOR SALE: Exclusive
freehold property, direct
from the Owner Builders

LEGAL NOTICES

Limited. 27. Throgmorton Street. London
EC2 2AN.

Wide choree of discount nights. Brochure.
Japan Services Travel. 01-437 5703.

FINANCIAL TIMES

PUBLISHED IN LONDON & FRANKFURT

MAk The Pfo n d M Ttoa IMM, Bmcftn Nm, 10 Cmpm Stmt, Lawfon CMP 4BY.
TtteE896 <877- Trie; (AdwtMagJ B8SC03. Ttfc«nfre naauttoe, Uodae. Ttfopbrnw: 0I-2« 8000.
Frndtfwt OWwt Tha FfoMeM Tin fbwpt) W, rWnfcW i fr . 34. 04000 MfotaHte 3.
Wtet Cemaay. Tata; 425193. TatoplMK 7598-0. EAarW; Fa ri—Ow 71-81. Teta: 416052.
TfkgbWR 7S9« 157.

INTERNATIONAL & BRITISH EDITORIAL & ADVERTISEMENT OFFICES

15527. T* 275 795.

12H,AastenI*»4L7ktau KadfWiEforeoceda 32, Madrid 3. TH.441 5772.

DSlMIdn

** Htt, Qama SL, K2 5KT. Trite
Tkk 051-834 9381.

IN THE MATTER OF
COMPANIES ACTS 1943 TO 1331
AMD IN THE MATTER OF
PAUL AMDUR LIMITED
Rcgd. Office: 423 Alexandra Avenue.
Harrow, Middlesex.

NOTICE 15 HEREBY GIVEN Pursuant to
Section 293 of tbe Gemounics Act. 1948
that a MEETING ol the CRE0IT0R5 of
the bo at- named Company will bo hold
at Kinna Head Kink Street. Hofrow."
Middloso* on 21st May 13S2 at T0.D0
am lor the purposes monlioncd m
sections 294 and 295 of the Said Act.
Dated tins 23 rh day ol April 1982.

By Order ot thn Board,

IMR5 ) J. ANDREWS.

Director.

Most elegantly designed and built to .
the highest standards. Swiss Government .
financial and legal regulations fully met for
sales to non-Swiss nationals.

Mortgages: up to 60% over 20 years at low
interest rates.

- _.v ■

„V" 4?-

COOMBE HILL,
KING5TON UPON THAMES,
- SURREY

Only 9 miles from Hvda Parle, -first time
on the market for 25 years. A dcfight-

Please contact fibs Luisier or Mr Marich direct at

the Owner-Builders:

Immqbilicre de ^Uazs SA + Sodim SA
P.O. Box 62, 1884 VUlars-sur-OHon. Switzerland.

Tel: 01041- 25/35353
Telex: 456213 GESECH

to the 1st fairway of -Coombc Hill Gall
Course. Rhododendron Sankcd drive
approach. All principal rooms face
south. ‘The very well planned and
spacious accommodation provides suite
oh. K) - principal piforoom,- dressing
room and bathroom. 2 guest bedrooms
and bathroom. 3 secondary bedrooms
and bathroom,. 2 further bedrooms.
Most • bedrooms Other than the
principal nave wash basins, Magm- ■
kmr part oak-pa netted hall with .
cloakroom. .30 ft oafc-PanePcd drawing
room and- study. Tudor- stylo- dining
room., servery kitchen and staff room.
Gas cmlral .heathfo- Garaging, lor a
cars. Z A era grounds vrltn sweeping
lawns, • rosoeeds. Shrubbery and trne
screens. Healed -and Illuminated, swim- -
(mag pool with Moorish style sun tree
pjv, I loo with- play. ’dance area, bar,
krttficn changing rooms, cloakroom,
barbeoue room.

Frceholo ’ lor Sale bv public - auction
cn 24lh June 19BZ (unless previously
soldi at -3 dpi at the Wimbledon Hill 1
feel. Wimbledon ViiIhc. S-W.19. i

Solicitor^ Messrs Janoers. -21 Upper J
B-nas Street. London WTY 3HD <Rcf 1
GSD!.- Tel. 01-629 3981. I

further detaHs from - the A sett oncers J

Hampton & Sons

Bm Pratihw u/304 1
8B5954Z. T«fe 2UKD9.

ffiofcoBtpFaiMd*folUfe™al2WD,Naalai:

l 2-10. Triat 60T. Tffc &B 3368.

gn«n«b; 39 ftp. Dwait. Trice 2K93. Fax: 512 Trine 413900
1401 Tah 312 9CB7. „ .

HMeam- KriMrti 14, Ag H ria at a. Wwcw.
Trine 413300 fon T it 243 1539.

ftwBHdi Sftoa Ha 7. Ns. 74 S 10U9. aSSSfata
^ *•*>• 13W - Tafc 65990. Tat SK S41 462S. AdmUstaa Take

JWML ' — APrenotf Take

ZT. __ 238409. Tib 0321 4W GOO.

2M0# TtL 731482a iw,. i — f-aidim «r iffairn

***=?■ 1 Uljwre,lH«a*!^£^0*5 1 piS^ta
2S414. Tafc MRU IOSS78. 0L Trias 220044. T* 2 97 200a

254M. T* DsMfo 5C837Z.

SbraaL OB2HIL Trim 72*4. BCtarU Tit
tOm 4320, Ariiwtkfo* Trie OH-226 4199.

' OL Trio: 220044. T* 297 2000.

W ftfo te Jasafre; Ba Brene* OS, Saks 26U-2512,
Jf Box*. Tafc

39. 269 8*45. Tatar e/a Raster*.

fly***^ mtsrt ri rraatiinnii no. Trio: ton- c Martel Via drift Watridi 55, Trio:
4I6W2. Ttt 7598 157. ****** rririliltifo. 510(32. Tri; 678 3314.

SI Trine 415193. Tri! 759841

4 881 Kttri: NMM 302, Itaag Om WHba 5
fofWN Rm< Cm&bL Tritt 75»4 MX Taft
5-Z3H56.

****** O ftwlri SfMrika BptfMat,
mahnaiw n , 7. Trine 17503. Tri: 50 W 88.
Triqst EdHerU 8th Raw, Khsa Ratal,

MaaMIrigi P.1L tai 2129. Trine 84257. Tel: aSS

C8-7M5 - Ranftara MfoL MO IMitaiiiS,

Ifl THE MATTER OF •
COMPANIES ACTS 1948 TO 1981
AND IN THS MATTER OF
R. AND R. INVESTMENTS LIMITED
Road. Office; 423 Afo-andrj Avonuo.

Harrow, Midtfletax '

NOTICE iS HEREBY GIVEN Pursuant ip
S ection 23 3 ol ltiu-Com|>anics Ad. IDAS
that a MEETING cf the' CREDITORS ol
iho abm-e-nomed Comounv vnl! bo hold
ar The ORiccc ol Sinqlu ft Cn.. Chaitercd
Accoumaniff. 423‘ A lex and la Avenue,
Harrow. Middlcsox on ZBth May si
1D.OO am for the purposes rarni.onod
in Scrtign5 234 and 295 of Iho Said
Act

Dated tins SOth day of April 1982.

By Order oljhc Board.

R. MALDE.

Director.

LEGAL NOTICES

HERON MOTOR GROUP P.L.C.

NOTICE IS HEREBY GIVEN Diet the
Order of tfer 'Court of Session sunciion-
mg b Schema oi Arrangorncni bgtwocn
Hoiori Motor Group P.L.C, and' its
minority shareholders god confirming
Iho reduction ol Caplfol resolved on at
the Ekiraordinery General Maanng dl
Horon Motor Group P.L.C hold on 12th
March 1982 wag rp/pgiored with the
Rcqistror of Compamos qn 12th May
1982.

DUI9DAS ft. WILSON

25 Chariotlo Square.

Edinburgh

Solicitors far

Heron . Motor Group P.L.C.

AMERICAN

EXECUTIVES

seek luxury furnisher! fiats or
liouses up to £350 pet week.
Usual Tees required. ' '

. Phillips Kny and Lewis-

01-839 3245 --

• ikett. Wimbledon Village.

-swio 5 BA, Tri: 01-946 OOB1/64B4

MOTOR CARS

898-7345.
Ufde Arina
Kntfmr.Tafc

P umunt Hritta, 1M C MftefaL Ttta: 12710C. T«ft 293 4050.
454969. Wirttaihiu r«i rU «i< m ^ i ■

MMtnr. ne ossz «9W9. Wirtkgten. UforW 91* Ifatfoari Wnu

PUBLIC NOTICES

Fur Share Index and Business News Summary, Tele phene 246 6026
(number, preceded by tbe appropriate area code vaBd for London,
B irmi ng ha m, Liverpool and Mandiestw).

NEWCASTLE UPON TYNE ‘
£10.000.000. Bills Isiuerf 19-S.6 2 to.
mature 18,8.82 *t ■ rite or 1Z>'«- T«tSl
jpDilcaDons were- £47.000.000 and tttere
sro 010 , 000.000 Bllli outstanding.

U aAmfabg b nhfcct to ttt pMUeto esnent (eras and nBritfaq, opta ri irtfah m anlltae m

request.

KIRK LEEE METHOPOtlTAN COUNCIL
Qtcrea £^>000.003 money EWIt for Ivux-
V 1982 to matere 18th

WWi- 198 - fender* wro received lor
. CS2.Mfl.D00 nnd all the Bills were a Hot led
at. an areraoe of 12.498 nett dhcggnL
The total of Bui; omumsing it

LOCAL. AUTHORITY BILLS
_ EAST SUSSEX COUNTY COUNCIL
£5,000.000.00 Bills, issue date l9ttr J
May. 1S8Z maturing -1 Stir August. 1983 ,
« -APBlIcattam totaled I

£4d.[HJ0 > MD.0Q find Itiye in
&1S .000,000.00 Bilk outsumung.

TH j national Radiophone, centre

offers nrospncttve ur-t«icputfe 1 tmr-
rnwrt hnhe siuiofy ttw mod. comore-

- in ihe.U.K Good
reasons for contacting us. keluda oar
' nuUt " t jnd compotitive, oBotations ana
"rn”* futilities, our sklilod engineers
wuimg to . late Jus; that little -bit of
P t r*i , L * c j with -your C*r, .an Minty ur

' =*"?■ .i -ww ot one

unxitatQD . jnIMcf AMf Df • cdor» • bur

: fiKKir* Jtertl JWaTwff «E5t

- "fo rarohaito tn -parpuchahst.

blare you sign on the- doted line tour*
wh ere w hy not phone or ttlcX uUT'Sata
D '^“yO , - G«fW7 , y Tnomu in ardar- to
»*pfo -that '-personal . ftrrtcc wfllcn
Rufcu. .sowwing . bmo --•* nainluu
E'-SK*” 1 .; Consultants Limited.

0225 0051 B or Toiox: 44«w/

SWITZERLAND

THERE IftaROWttJQ CONCEJW
. -- IN GREAT BRITAIN .. . .
; that aiCHANGfe CONTROLS
will be enforced again!

-TOR£iGtf£rlS . can .buy apartment*'
freehold on LAKE GENEVA, in
1 Momreu* .near -UuflBnne^ ot fill-
year-rtniqd " resorts. $l _ Carguo
..-ncjir Geneva^ Vlllaea., Verb for. Lbs" .
(Ha blanks, LeYSJft, -etc. FINANCING ;
50-TG^i -AT-. LOW -INTEREST RATES.
-Also, quality prapamos in-' Fra near
Apenments in EWAN on tire- tolffi.
aptiroi i maia l y 35. minutes ^frato
&oneve.- sod hikuriods. - villas VEB? .
NEAR TH& -BORDER, OF ■ GENEVA,
built: 10 year soaciflcatnas'. Ad*t*c
Jr4a pcBlBited^-
. - ■ _ Write to: Povoft H ito - 1

- C/0 O08E PLAN SA, ,Mon-Ropot 28:

- W» LMMtom*. SwtowrianU :

- -

m

I BREATHTAKING BARBtCAI+— WmV «»»-

| SA . SM

Financial Times -Wednesdsy ;.iay 19 1882

x H ... i'- -• .-••••••' j..; •• -

i

I '3*2

KENT 132 ACRES
Near Maidstone

-A magnificent Country House with beautiful views
over the Weald.

4 reception, S bedrooms, 3 bathrooms, oil-fired central
heating, indoor ■ swimming pool, sauna, jacuzzi,
outbuildings, 2 cottages, stabling, garaging,

London Office: Ref/CC.

KENT 377 ACRES
Charing 3 miles. Ashford 5 miles.

An Outstanding Mixed Farm on Grade 2 Land

Modern farm buildings. 3 cottages. Offered with or
without main Farmhouse.

London Office Ref/ AM.

SURREY 215 ACRES
Within 30 Miles of Central London
An Imposing Residential Property- with Farm.

A Georgian house with later additions. 4 reception. 6/7
bedrooms, boudoir, 7 bathrooms, gas central heating. 2
staff flats, heated indoor swimming pool, farm with
extensive stock buildings, 3 cottages.

Ascot Office: Tel: 0990 24732. Ref/TT.

NORTH ESSEX 662 ACRES
Within 50 Miles of London
An outstanding grade U Commercial Arable Farm.

16th century moated farmhouse with 2 reception, main
bedroom suite and 5 further bedrooms, office, range ot
attractive period farmbuildings, 2 cottages, modem grain
complex with total storage capacity of 1500 tonnes.

Joint Sole Acents: Bidwells. Cambridge. Tel: 0223 841S41
and KF &. R, London Office: Ref/CF.

HERTFORDSHIRE 89 ACRES
Within 35 Miles of Central London
A foljy equipped, registered. Riding &
Show Jumping Centre.

House with- consent to extend and presently
with 2 reception, 4 bedrooms. 2 bathrooms,
planning permission for staff hostel, full size
indoor show jumping arena, 2 stable yards with
31 boxes, large outdoor jumping ring, manege,
extensive paddocks.

London Office: Ref/CF.

OXFORDSHIRE 100 ACRES
Near Banbury

An ou tstandin g productive Arable Farm in the
Heythrop Country. .

Attractive period bouse, recently and
completely renovated with 2 reception, , 4
bedrooms, 2 bathrooms, full central heating,
'farm buildings .and stabling, bungalow,
shooting. -

London Office: Ref/ AM.

HAMPSHIRE 775 ACRES
NearRomsey

An excellent, modern Dairy and Arable Farm. .
Farmhouse, cottage, 150 cow dairy complex, 3
let cottages, valuable woodland, excellent
shooting. As a whole or in 7 lots.

Joint Sole Agents: Woolley & Wallis, Romsey.
Tel: 0794512129:

And KF & R,

London Office: Ref/ AM-

HAMPSHIRE 122 ACRES
NearStockbridge

An area of Water Meadows in the Test Valley.
A compact block of summer grazing land, part
having produced a heavy crop in recent years
and j.0 acres of woodland. •

As a whole or in 2 lots.

Joint Sole Agents: Pink. Donger & Lowry
of Winchester.

Tel: 09623374. And KF & R,
London Office: Ref/CF.

NORTH YORKSHIRE 155 ACRES
Between Ripon & Harrogate '

A most attractive Forestry & Sporting Estate.

155 acres of freehold dedicated woodland.
Sporting rights over a further 1157 acres.

As a whole or in lots.

Boroughbridge Office: Tel: 09012 3171. Ref/JHJ.

BERKSHIRE 10 UPTO 414 ACRES
Within 40 minutes of London & 2D minutes of Heathrow.

' A compact, weU-famintahied Small Estate.

Verv attractive period manor boose with-5 reception, large kitchen, 5
bedrooms, 3 bathrooms, numerous brick and tiled outbuildings. 10
acies. Also available 140 acres first class arable land with 400 tonne grain
dning and storage unit, 10 acres of woodland.

Further land to an overall total of 414 acres can be made available.

Joint Sole Ageats: Simmons & Lawrence. Henley-on-Thames.

7i& 04922 78301 andKF&R, London Officer Re0CF.

SUSSEX 135 ACRES.

. . Between East Grinstcad & Tunbridge Wells
A magnificent 15th century Country House in
lovely countryside.

3 reception, 7 bedrooms. 5 bathrooms, oast cottage,
outbuildings, heated swimming pool, hard tennis court,
pair of cottages, magnificent gardens and grounds.

London Office: Ref/PR.

BERWICKSHIRE 1.100 ACRES Near Kelso
An outstanding Agricultural Property in the Heart of the
.• Borders Country.

Superb early 38th century house with 3 reception, 6
bedrooms, 3* bathrooms, delightful gardens and grounds,
excellent cattle and grain buildings, 6 cottages, over 700
acres of arable land.'Pastureland, woodland. As a whole
or in 5 lots.

Edinburgh Office: Tel: 031-225 7105. Ref/HACA. :

NORTHAMPTONSHIRE 616 ACRES
Midway between Daventry & Banbury
A quite exceptional Residential and Agricultural Estate.
A classic late ISth century grade I listed House with 2 halls, 5
reception, 9 bedrooms. 6 bathrooms, nursery flat. 3 flats, garages
and stabling, orangery, squash and tennis courts, beautiful
gardens and parkland, a mixed dairy and arable farm with
farmhouse and 3 cottages. As a whole or in 2 lots.

Joint Sole Agents: Lane Fox & Partners. Banbury.

Tel: 0295 710592 andKF & R,

London Office: Ref/CF.

NORTH HEREFORDSHIRE 326 ACRES
Leominster4 miles
A First Class Stock and Arable Farm

Architect designed farmhouse with 2 reception,
5 bedrooms, bathroom, oil-fired central
healing, outbuildings, range of modem
farmbuildings, the land all in one block with
good access.

Auction on 11th June.

Hereford Office Tel: 0432 273087 Ref/ JAT.

WEST SUSSEX 106 ACRES
Near Horsham

A fine early 19th century house in an
elevated position.

5 reception, main bedroom suite, 5 further
bedrooms, 3 further bathrooms, kitchen/
breakfast room, garden room, central heating,
heated indoor pool & sauna, stabling, garaging,
hard tennis court, cottage, pasture and
woodland.

London Office: Ref/PCT:

INVERNESS-SHIRE 50,000 ACRES. .
Fort William 47 Miles -
One of Scotland’s most famous sporting estates
covering 80 square miles with 30 nafles of coastline.

Magnificent main and 2 secondary houses, 30 other
houses and cottages, renowned deer forest producing
140 stags and 2SQninds, 3 salmon and sea trout rivers,
1 .100 acres of woodlands.

Joint Sole Agents: Conrad Ritblar&Co., Glasgow.

• Tel: 041-226 3971 and
KF & R. Edinburgh Office:

Td: 031-2257105. Ref/CBSS.

SUTHERLAND 19.200 ACRES ?
Lairg 9 Miles

An excellent Farming & Sporting Estate in
the Highlands.

Shooting lodge, . recently modernised
farmhouse. 5 cottages. 3,000 sheep, deer forest
averaging 31 stags, grouse moor, loch fishing,
outline basis III dedication over 4.800 acres.

Edinburgh Office: Td: 031-225 7105. Ref/CBSS.

DEVON 278 ACRES
Tavy Valley

A fine Listed Manor House with commanding views.

5 reception. 7 bedrooms, 4 bathrooms, old kitchen/dining
room, listed bam, stables, cottage, gardens and grounds,
common grazing rights, shooting rights over an additional
9t » acres. The Lordship of theManor is included.

Sherborne Office: Tel: 093-581 2236. Ref/MP.

■ .. ~ --iiV ' ■ .

DORSET 40 ACRES

Between Sherborne & Sturminster Newton .

A Small Farm with Excellent-Buildings.

Farmhouse with 2 reception, 4, bedrooms, bathroom,
garages, stabling, garden, fishing, large covered yard,
large Dutch bam.

Sole Agents: Senior & Godwin. Sturminster Newton.

Tel: 0258 72244. KF & R. Sherborne Office:
Td: 093-581 2236. Ref/MP.

v- : v -vfi

SOUTH DEVON 66 UPTO 900 ACRES
Near Plymouth

Ad outstanding Residential Estate.

Beautiful early Queen Anne house with 5 reception. 3 bedroom suites.
4/5 further, bedrooms, indoor and outdoor heated swimming pools,
tennis court, 2 gnest/staff houses, gardens, parkland, lake, w acres.
Additionally available are 93 acres of woodland, pasture and other
lakes, private airstrip with large hangar, a first-class fully-modernised
farm with house, dairy and stock buildings and 4 cottages.

Joint Sole Agents: Stratton & Holborow of Plymouth. Tel: 0752 666555
and KF & R. London Office: Ref/CF.

NORTH DEVON 380 ACRES
: Exmoor National Park
A productive Stock Rearing and Grazing Farm.

Substantial farmhouse with 2 reception,
kitchen/living room, 5 bedrooms, bathroom,
modern & traditional buildings, planning
permission for further accommodation.

Joint Sole Agents: Phillips, Saunders & Stubbs,
Barnstaple. Tel: 0271 75784.
And KF & R.

London Office: Ref/CF.

NORTH DEVON 430 ACRES
30 Miles Exeter

An unusually fine Residential Agricultural &
Sporting Estate.

An outstanding Georgian House- with period features.
Entrance & inner halls, 4 reception, principal suite and 7
further bedrooms, 7 bedroomed secondary house.- fully
commercial farm with manager’s house and’ 3 bungalows,
2 further cottages and flat.

London Office: Ref/CF,

CHESHIRE 495 ACRES

Near Frodsham, 10 Miles Chester. f

A most attractive Agricultural Investment 1

Two adjoining farms currently let at £16,830 per
annum, and comprising three farmhouses, four
cottages and two dairy inuls.

Joint Sole Agents: Denton Clark & Co of
Chester. Td: 0244 3127/1
andKF&R,

London Office: Ref/PABP.

SOUTH SHROPSHIRE 214 ACRES
Church Stretton 5 Miles
An excellent Stock and Sheep Farm.

Well modernised 4 bedroomed farmhouse,
extensive integral cattle and sheep handling
system inducting cubicle housing for 76, new
field trough system and reservoir.

Shrewsbury Office: Tel: 0743 62587. Ref/ML.

WEST SHROPSHIRE 602 ACRES
, Shrewsbury 15 Miles
An Agricultural Investment in 3 Holdings.

1. A dairy and arable farm of 223 acres - rent
£5,850. 2. An arable' and mixed farm of 220
acres- rent £6,100. 3. An area of mixed arable
land of 159 acres -rent £4,300. A total gross rent
of £16,250.

Shrewsbury Office: Tel: 0743 62587. Ref/ML.

WORCESTERSHIRE 423 ACRES
Edge of the Vale of Evesham
An outstanding Residential & Agricultural Property
Gentleman’s modem residence with 3 reception, 5
bedrooms. 2 bathrooms, solar heated pool and
landscaped garden. Georgian farmhouse, pair of
cottages, stock rearing and arable building*, stabling,
8 acre trout lake, duck flighting.

Joint Sole Agents: Banks & Silvers of Bromsgrove.

Tel: 0527 75234 and KF & R.
London. Ref/ AM . And Hereford,
Tel: 0432 273087. Ref/KGM.

Adjoining Newport and the M4 Motorway
An attractive Stock and Arable Farm.

Farmhouse with 3 reception, dairy, 5 bedrooms,
bathroom, range of traditional buildings.

Hereford Office: Tel: 0432 273087. Ref/JAT.

GWENT 152 ACRES

I ondon W1R OA H Telex 265384

Australia and New Zea land
Banking Group Limited

(Incalpjflllfrf *rith T hwinil liability fti t he SbUgot Victoria , Australia)

Half-yearly Profit and Dividend

The directors of Australia and New Zealand Banking

Group limited rodar announced an unaudited
consolidated profit after tax, excluding extraordinary
i tems, nf SAW.1 56,000 for the half-year ended March
31 1932. This is an increase erf $AI,099,000 or 1.2% on

the previous corresponding half -yean

After ind oding extraordInai7 items, consolidated .
after tax profit for the half-year was IA90, 953.000
compared with $A91,446,000 for the 1 992 hali-yean
The con cributions to consolidated operating profit
by each of themajor companies were:

Australia and New Zealand

19S2

SA’OOO's

19S1

SA'OOO's

Movement

SA'OOO’s

%

Banking Group Ltd.

Australia and New Zealand

37,241

40,272

-3,031

- 7.5

Savings Bank Ltd.

ANZ Banking Group ( New Zealand) Ltd. -

13346

13,724

+ 222

+ L6

Consolidated Profit

S.6l5t

7,6961-

+ 919

+ 115

EsandaLtd.
finance Corporation of

18,983

17,436

+ 1,547

+ 8.9

Australia Dd.

6,547

6,102

+ 445

+ 73

■fExd udes minority interests.

The directors commented that operating conditions in
Australia had been difficult during the haJf-yeac This
was most noticeable in the area of trading bank
operations where there was a downturn-in local
profitability arising mainly from the impact of:

- official restrictions on growth of lending

- pressure on interest rare margins a rising from
significantiocreasesinthecostofdepositsand the
effect of controls covering a large dement of trading
bank 1 and sav ings bank 1 lending

- cost increases particularly in the personnel area as a
result erf award settlements

Indications are tha t these factors will continue
through the second half of the rear.

An interim dividend of 14 cents per share has been
declared ( in 1981 the interim dividend was 14 cents per
share paid on issued capital prior to the 19S2 one for five
bonus issue).

The dividend is payable on July 1 1982 to shareholders
registered in the books of the company at the dose of
business on June 9 1982 and transfers must be lodged
before 5 p.m. on that day (June 9 1 to participate.

Dividends payable to shareholders on the London and
Wellington registers will be converted to local currency

at the appropriate rate for telegraphic transfers on June 9
19S2.

Details of the consolidated resultfor the half-year to
March 31 1982areasfol]ows:

Group Operating Profit
before taxation
Less: Income TaxExpense

Groap Operating Profit After Taxation
Less: Minority Interest of outside shareholders
in subsidiary companies

Gpnsoltdatpcf Ope r^ng PmfiraH rfhnihiHp tn

members of the company
Extraordinary Items ( net )

Surplus on sale of properties
Surplus on salcof shares in
other trade investments

T.pw;;Minhriiy1ntprF»rt-nfmtf«;idps1iaf»»hnMprg
in subsidiary ampanies

Extraordinary Profits-
excluding minority interests

Consolidated profitlafter Extraordinary Items)
attributable to members of the company

Half-Year

to3L3.S2

SA'OOO’s

Half-Year

to3L3.Sl

SA'OOO's

Percentage

Movement

%

160,177

165.922

- 3.5

68,025

75181

- 95

92^52

90,741

+ 16

2996

2,634 '

+ 116

89^56

88,057

+ L2

1350

3389

-54.3

276

—

N/A

1,826

3389

• —46.1

29

—

N/A

1,797

3,539

— 47J)

90,953

91,446

- 0.5

Groap Income
Groap Interest Paid
Depredation.- inducting amortisation
Eamingsf before extraordinary items
pa- share on issue at Match 31)

1,252.800

752,810

12*481

966.497

510.911

10,127

+ 32.7
+ 47.3
+ 23 J

42.70c

42.31c*

•Adjusted for 19S2 bonus issue

Issued and Listed Securities as at March 31 19S2

Preference Shares
Ordinary Shares

Of which issued during reporting period

Convertible Notes

Options

Number

Issued

■0005

Of Which
listed
"000s

Par

Value

Paid-up

Value

NIL

»

208.807

20S.S 07

SAi.OO

5A1.00

35.114

NIL

NIL

35,114

SA1.00

SAI.OO

Debentures - totals only
Unsecured Notes - totals only

SA'OOO's

1.475.533

709,708

Deutsche Bank

Aktienge&ellschaft - Frankfurt am Main

(Incorporated in the Federal Republic of Germany with limited liability)

Notification of Dividend

The Ordinary General Meeting on May IS. 1932. has resolved to distribute the
distributable profit of the financial year 1931 being DM 240.525,/ 30 and has
approved the payment of

a dividend of DM 10 per old share of DM 50 par value

and DM 7.50 per new share of DM 50 par value (from the capital increase

in 1931).

The dividend will be paid less 2576 capital yield lax against submittal of Divi-
dend Coupons Nos. 38 and ^ 38, respectively, at one of the pa/ino agents listed
in the Federal Gazette No. 93 datet May 19, 1932. In accordance with the
English-German Double Taxation Agreement of November 26. 1364. as amended
in the protocol of March 23. 1970, the Gei man capital yield tax is reduced from
25?o to 15?o for shareholders resident in Great Britain. To claim this, share-
holders must submit an application for reimbursement with'in throe years from
the due date.This application is to be addressed to the Bundesamlfuer
Finarcen, Koblenzer Strasse 63-65, D-5300 Bonn-Sad Godesb^rg.’

Under the German corporation tax system effective as of January 1 ,1977, to the
dividend a tax credit is linked amounting to 9; 16 of the dividend declared.
However, shareholders resident outside the Federal Republic of Germany and
Berlin (West) are not entitled to this tax credit

In Great Britain payment will take place through the following banks: .'
Deutsche Bank AG, London Branch, 6, Bisliopsgate, London ECIP 2AT,

Midland Bank Limited. International Division, Securities Department,

Suffolk House, Laurfence Pountney Hill. London EC4.

The dividend payment in Great Britain is made in Found Sterling converted from
Deutsche Mark at th6 rate prevailing on the day of submittal of the dividend
coupon.

CoBipaaies ansi Markets

BIDS AND DEALS

Stone-iPlatt
subsidiary in
£lm buyout

Mass Developt.
builds up
Tozer stake

Mass Development Company
B.E.C. of Bahrain, a' subsidiary
Of Wussad A1 Saleh and Sons
Group of Kuwait, has built up its
shareholding in Truer Kemsley
and Millboiirn f Holdings!, the
international finance 1 and invest-
ment group.

As speculation mounted in
London yesterday about the
identity of the purchaser of the
JL1 per rent shareholding which
Mass- Development held in
Grind lays Holdings, it was
revealed that Mass Development
purrhased 1.2m shares ia Toner
on May 14. It is now interested
jn ppariy 5m shares in Toser re-
presenting 9.26 per cent of the
equity.

Nottingham
Manfg. buys
leisure stake

Nottingham Mann facta ring,
one of the leading textile
suppliers to Marks and Spencer,
disclosed yesterday that it bad

acquired a near 10 per cent
stake in the loss-making leisure-
wear and ramping equipment
retailer. Greenfields Leisure.

The holding was described by
Greenfields’ brokers. L. Messel,
as an investment. The group
is capitalised at £3m while Not-
tingham's cash and near cash
balances at the December
balance sheet date were shown
at £35. 7m.

Taylor

Woodrow

expansion

THE RESTRICTED volume ■ **f
new work available in the UK
for roirururimn and trading com-
panies and the cotnequenl hmi-
i anon nn profit margins has
promoted Ta>tor Woodrow,
hijilder end rjvil engineer, to
rooifoii* 1 m look for profitable
ijppnripnit'ea oversea*.

During ilie. past year the group
r-vtrnrfp'f if = property investment
Tiere.-:-. in Australia and i*s
lipii-=in- end properly operations

n i T js. inhere ii is also plan-
nm 1 : in '•lep up -i*^ opencast
coal-inmros operation:?.

}?, Hi* annml renorl. Mr K. G.
in-.fci Puttirk. Ibe chairman,
-.-v: *lu» -roup p«‘licy pf searching
I’.-r sit liable new blirmess pros-

■■'•■-is in n*r- country and
ui?r ri-.p they are to be
'••iin.-t •;( any pari nf the world
! l roiiinijc.

tin ■«<, * reduction in rs
ret l-, n'r on fi- od assets and

Hi'i'VM'nr. r»mlilTier| WVtll the

o P frurn r ales of fixed
■ r-~ . — •'fhu‘i',1 jn * ctronQ

•• •) thai the group

>q i:»s i - ill* liquid fund,
v i— -i in :» rr -.-i f.r.nm.

»' '•'•■’••il*"l i*n April 16. a

• i:-i i,—.-. i*n a rnid contra*.'! tn

1 -I ri~iitln«l in Hip group's
•• ih'r n-nfii •> fnr tlm THgj year
i nr vr ' ii ally unnliangpH ai

• i norM villi £."4.R4m. ,

■~r 1 . UiUinr assnrtalps.

• •■<-1 l»i fSTnm, an increase

*• • in*- 'hr -ITr* I nr- said

l«-n ■ • pprc- SC n,i0U Mu?
• of t loss sjifTerprl

• • •<- The. aUrJeri Ilia I
'twi t-rre being
rue*J nn the rmu.rari.

* ">•’ * oninlirta.lerf

— . r or |.|Sj

- • 'ii-il-. ai rets 87m

■ ■ 1 nri- pifiTCnt

■"‘“■Hi* i.GTIinil.
u V- liriq at I Sf
Tv OIJ Juno {|.

r n\u.

» *7 ->r,T.^

V • 1 •» *1
' ’ ■ I */>/*?

jflfl

-> : l-.OI

Frankfurt am Main. May 1332

Board of Managing Directors *

rroKli INDEX

- ’Tf ’7.1 < -Si

.. Financial Times Wednesday May 19 19S2

COMPANY NEWS

MINING NEWS

Sweden’s Amcoal earnings

THE management of Platt Long- ;
close; the textile dyeing and !
suing machinery manufacturing
arm of Slone-PIatL Industries,
have bought out their company
front Sfone-PIatt's receivers with
the help of City backing.

In a deal believed to involve
a total of nearly am the
management.. led by i»hier
executive, Mr Trevor Hick, have
subscribed 25 per cent of the
equity of a newly formed com-
pany Longclose.

The ■ Department nf Industry
will provide £185.000 towards
the purchase pr\re while the
hulk of the cash has been raised
by the English Association
Trust, whirh will place the
balance of the equity and a loan
stack with clients. These include
the English Association Develop-
ment Fund and a number of
institutions.

Platt ■■ Longd ose. which was
part of Platt Saco Lowell, had
operated profitably and was
particularly suited for a
management buy-out, the Eng-
lish Association said. More than
80 per cent of turnover was
expnrtetL

On Monday another part of
Stone-Platt, which went into re-
ceivership in Marrh. was sold
off hy the joint receivers. Well-
man Bibhy bought the Stone
Piatt Transmission Products
range of equipment.

LKAB may
get loan
from EC

further in 1981-82

BY KENNETH MARSTON, MINING EDITOR

SWEDEN'S 1 on s*a va ara-KI i nm-
avaara fLKAB) state-owned iron'
ore mining group is likely to get
a long-term loan from the Euro-
pean Commuaity to. expand its
mines in northern Sweden,
according to Mr Viking SJostrand
the company's managing director.

He told AP-Dow Jones' -that
LKAB will send the EC a letter
at the end of this month out-
lining a Kr 2.5bn(£23Sm) 10-year
expansion programme for the
company's main mines at Kiruna
and Maimherget.

Specific terms of the loan and
its amount have not yet been
discussed but it is thought that
the loan sought is around
Kr 300m (£26.6tnt with a

maturity of some 15 years.

Production from the proposed
expansion programme would
start in 1990. At present about
80 per cent of LKAB annual out-
put of 25m tonnes of iron ore
gnes to the EC. This 14 per cent
share nf that market in expected
to rise to 17 per cent within a few
years.

The company has been running
al a loss since 1976, but sees
siens or profitability returning
this year, ft has been cutting
costs and improving the recovery
technology to deliver higher
quality ores to customers.

RESULTS OF Anglo American
Coal .Corporation (Am coal ) for
the 15 months to March 31 bear
out thp South African coal giant's
earlier confidence that it would
fully maintain earnings growth
in tile period.

Net, profits at the nine months'
stage were up by 29 per cent and
the total of R13lJkn (£67.0m!
now reported for the 15 months
equal, an Increase, on an
annualised basis of 32.S per cent
over the R79.1m earned in the 12
months to December 31 1BS0.

The latest 15 raoniiis’ account-
ing period arises from the change
in Amooal's financial year-end
from December 31 to March 31
in order to match that of the
parent Anglo American
Corporation,

A final dividend for the
extended period Is declared of
95 cents (49p) which follows two
earlier payments of 25 cents and
46 cents. For 1980 there was an
interim of 36 rents and a final of

Ameoal points cut that the
latest results are after
implementing the. new policy of

amortisation of mlnlhg assets'
and - .-after . changing . from tax
equalisation of - the allowances
arising- from major capital ex-
penditure programmes only - to
one of deferred taxa tton covering
all : the group's coal mining
assets.

72 cents.

'15 months 12 months

JO

to

31 J52

1920 -

Rm

. Rm

Turnovsr

-802.7

- 4665 .

Trading profit ...

- 258.0

. 127 4

Amortisation _. ■

14.8

• • ' —

Depraciauoo ...

- - 4.7

33

Profit balarq tax

. - 238.5

124.]

Normal tax

. 53.3

15.8

Equalisation lac

—

225

De Tarred tax ...

■ 44.3

0.5

Profit after tax...

. 140.9 '

. S5.3

Minorities

.8.8

6.2

Attributable

131J

79.1

In- order to make -the latest
profit directly comparable with
that far 1980 it is thus necessary
to add back the provision for
amortisation of raining assets.
This resu»s in an annualised
earnings increase of .47.8 per

cem. -

'The latest earnings apply - to a
capital. of 24.4m shares increased

from ,23.5m shares in l&SO'as a
result of the - acquisition, of Natal
Anthracite Colliery. ' .

' Latest earnings, per share of
537 cents represent an annualised
increase of 27.6 per cent over the
336.7 cents per share earned in
• 1980/ The increase becomes
42 per cent when the provision
for amortisation of nuning assets
' is added back.

' The size of Ameoal is under-
lined by the fact that the group's
total' capital expenditure pro-
gramme, which includes new
collieries, is expected to amount
to R 1.85 bn in end-1981 money
terms of which Am coal’s invest-
ment -would be. R1.3fibn.

Rising earnings of .Ameoal
stand out well against the other-
wise gloomy . background of
dwindlme profits and increasing
losses being reported by virtually
all other sectors of the mining
industry.

Whether Ameoal earn maintain
its rate pf profits growth in the
current financial year remains to
be seen, hut there can be little
doubt about the company's
longer term growth prospects.

Extract from Audited Accounts

ROUND-UP

Hit foy the fall m gold prices.
South Africa's marginal pro-
ducer. Durban Deep, will need
to resort to borrowing in order
to cover shortfalls in liquidity.
Shareholders are heing- asked to
approve an increase in the com-
pany's borrowing .powers from !
R4m f£2.06m) to B30m. -The
veteran gold - roine also .
announces, a shaft accident J

which will adversely affect pro- j
duction for about 10 days. .

. * .-*■ . * . '

Mr Grahame Mappi chairman
of Australia's Oakbridge mining
and industrial group says that
although results for the first
nine months of the current year
fn September 30 are better than
those of a year ago they are still
regarded as disappointing in
view of the new coal capacity.

“ However, given reasonable
operating conditions we expect
to have a strong final quarter,"
he adds.

* * *

Canada's Echo Bay Mines, a
unit o£ 1U International, has
poured its first unrefined gold
from the C$134m (£59m) Lupin
mine in the Northwest' Terri-
tories. Gold reserves are put
at more than lm oz to a depth
of 650 ft

Share Capital
Retained Profit
Subordinated Loans
. (£ equivalent)
Deposits
• Loans
Total Assets
Profit befo relaxation
Profit aft erlaxation

2SthFeb.1982

£000

11,600

8,063

12A85

27th Feb. 1981
£000

10,000

7,435

10,317

507,225

366,590

558,823

4,134

2,228

497,805

295,479

544,340

4,139

1,914

„i .* ^ W i : •;

: • '.-i*

/j

‘V-f ' '

Tronoh Mines

maid:.

p.'*-- :fl ,\

^ • ** r -i

DESPITE A sharp contraction
in tin mining profits, Malaysia's
Tronoh Mines has increased
IPS1 earnings to Ma$9.93m
ff 2.37m). or 69 cents per share,
from Ma$8.26m in 1980.

Latest net profits have been
underpinned by -a gain of
Ma£2.gm on a land sale and a
much lower tax charge.

A final dividend is declared
nf 4{t cents to make a total of
50 cent*, less tax at 40 per cent,
enmpared with the 1980 total of 1
110 cents less tax.

IvS limited

*' ¥ - ' •* '• J

» v . .

An International Consortium Bank
(Sharehddefs'aggregate assets well exceeding US. S214 bilfion)

Assodated Japanese Bank (International) Unfited
2&-30 Com hjfl. London EC3V3QA
Vak Of-623 566l.Tofax: 883691

Dus announcement appears as a matter of record only.

May. 1982

TOPPAN PRINTING COMPANY LIMITED

(Toppan Insoau Kabushiki Kaishaf

25,000,000 Shares of Common Stock

(par value ¥5Q per share)

evidenced by

European Depositary Receipts

ISSUE PRICE U^. SI* 878 PER SHARE

Daiwa Europe limited

Nomura International limited

Baring Brothers & Co., Limited Credi

Robert Fleming & Co. Limited Kuwait Intern

LTCB International Limited TheNikkoJ

J. Henry Schroder Wagg& Co. limited

Westdeutsche Landesbank Girozentrale

Credit Suisse First Boston Limited
Kuwait International Investment Co. s.a.k.
The Nikko Securities Co., (Europe) Ltd.

. Societe Generate

Bank of Tokyo International Limited ' Dai-IcM Kangyo Imemational Limited . ' Grieveson, Grant and Co: ;

The Hongkong Bank Group. Mitsubishi Bank (Europe) S. A. • Mil&tiHnanceE^

Morgan Grenfell & Co. Limited / Sumitomo Finance International Bancadei Gottardo -Banque Worms;

Dai- Ichi Securities Co., Ltd. The- Mitsubishi Trust and Banking Corporation {Esrope) SLAi

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. .-Fmaiira 19 19S2

Csmpaaies and Markets

COMMODITIES AND AGRICULTURE

4*ib

3 nk
3d

Zimbabwe EEC farm vote shocks consumers

IOD3CCO 9 Y PtlRCCMWODITffiS STAff

AVfWVl*t BRITISH CONSUMERS were consumers? ” doing this than artificially high

CAI/UJl i. Cl CUll ‘appalled” at the way new . She described the new farm prices which make the sugar and

* i EE Cl f a rm simnnrt. nrww K-ari nrir^ ic litA «... «r M mi

By Tony Haiwkins in Narara
TRADE finance totalling £2Sm
to provide offshore funding for
Zimbabwe's tobacco exports in
19S2-8S was announced here
.yesterday by the Merchant Bank
'of- Central Africa. The MBCA
' said it-had arranged the offshore
. funds for tobacco m the form of
•a revolving export facility fol-
.. lowing a Zimbabwe 'government
.ruling that tobacco exports be
-financed from abroad from the
-time it is transported from
^Harare.

The regulation, announced

• earlier this year is designed to
? sped .up- foreign exchange cam-

ings at a time when Zimbabwe's
-balance of payments position is

• strained- The MBCA said -the
finance - facility had been
arranged and managed in Lon-
don by N. M. Rothschild B-stik
"Brussels Lambert ( UK}-, Banque
Nationaie de Paris. Dresdrier

'Bank and Hill SamueL
r Although the MBCA is the
.first Zimbabwean' bank to pub-
licly announce its tobacco fin-
.ancing arrangements, it is
; understood that other commer-
cial and merchant banks, bave
-made s imilar arrangements for
- — in at least one' case— ^even
larger amounts.

- . Zimbabwe's .tobacco exports
last year were valued at £l65m
and this is expected to increase
in 1982 to more than £185m.

Jute producers
start talks on
supply problems

BANGKOK — Jute - producing
countries began : talks yesterday
on ways to overcome problems
facing the jute industry.

The four-day meeting is
sponsored by the United Nations
Economic and Social Commis-
sion for Asia and the Pacific
(ESCAP). . .. .

Shah Kibria, ESCAP execu-
tive secretary, said agreement;
should be reached on issues
delaying completion on an inter-'
national jute agreement.

He said the meeting would
examine schemes on supply
adjustments, competition with
synthetics, and joint marketing
to overcome the imbalance
between supply and demand of
jute and jute products.

*Y OUR COMMODITIES STAFF

BRITISH CONSUMERS were
“appalled" at the way new
EEC farm support prices had
been feared through in Brussels
without Britain's agreement, the '
Consumers in the European
Community Group (UK) said
yesterday.

Commenting on news that
EEC Farm Ministers had passed
through farm price proposals on
a majority vote, denying
Britain's Minister, Mr Peter
Walker, the right of veto, Mrs
Kate Foss, the CECG chairman
sakL “ are ail future settlements
to be made this way. without
the agreement of member own-
tries, against the interests of

consumers? ”

• She described the new farm
prices, as like something out of
Alice in Wonderland: “The
biggest price increase ever
means that already hard-pressed
consumers vail have to pay even
more to encourage farmers to
produce yet more food, which
the Community doesn't want.”

This. totally illogical situation
would place a heavy burden on
poor families for whom spend-
ing oh food was already dispro-
portionately high, Mrs Foss
declared;

41 Farmers should get a fair
return,” she conceded, “but
there must be a better way of

doing this than artificially high
prices which make the sugar and
butter mountains and the olive
oil lake even bigger.”

The EEC already produced
75 per cent more sugar than it
needed and spent a third oT its
budget on milk price support,
although its production was
20 per cent above consumption,
Mrs Foss- pointed out. .

The CECG estimated that the
prices forced through in
Brussels would put an extra Sp
on 500 grammes of cheese, 5p
on a 250 gramme pack of butter,
Sp on a kilo of sugar, l£p on a
kilo of flour and |p on a large
loaf.

Boost for soya market

BY TERRY POVEY

WORLD soyabean and soyabean
product prices could rise
because of a smaller predicted
crop from Brazil, the U.S. Agri-
cultural Department (USD A)
says in its monthly “ World Oil-
seed Situation" report.

Premiums on Brazilian fob
soyabean oil reflected this yes-
terday and were traded 3.3
U.S. cents per pound over the'
-July Chicago position, com-
pared with 2.8 cents at the end
of last week when the price
for July futures was 20.94 cents
per pound.

U5DA believes that Brazil's
soyabean crop will be down to
|_ 12.8m tonnes in the present

season, which ends in Septem-
ber, 2.4m less than the record
1980-81 level. Brazilian exports
of all soyabean products are
therefore expected to fall and
there is already market specu-
lation that the country will
become a net importer in the
current year.

USDA says dry weather in the
main growing area, principally
the state of Rio Grande do Sul,
is the main reason for the fall in
the crop. Exports are seen as
totalling 700,000 tonnes, down
0.5m on the projection made last
month and lm tonnes less than
in 1980-8L

Carry-over stocks at the year

end are expected to be very low
and, in order to maintain 'Us
crushing’ levels, Brazil could
import up to 1.4ra tonnes, with
the principal suppliers being
Argentina, Paraguay and the
U.S.

Work! soyabean and soyabean
product prices have been falling
since late. 1980 but, according to
.USDA, may well now have
reached their lowest price for
the current marketing year.
Stocks worldwide remain fairly
high but have fallen since the
start of the year. This coupled
with a weakening of the dollar
should see demand picking up
and pric.es rising,

Fears over Jersey beef purity

BY OUR CHANNEL ISLANDS CORRESPONDENT

JERSEY’S Department of Agri-
culture is to examine the dash
between farmers and catde
breeders that has been debated
hotly for at least ten years —
whether the importation of
semen from, for example,
Charolads bulls should be per-
mitted in order to produce
cross-bred beef stock.

Members of the Jersey
Fanners' Union voted by more
than 2-to-l in support of a
beef inquiry report recommend-
ing the importation of semen.
But there was an overwhelming
vote against the scheme at a
subsequent meeting of the

island's breed society, the Royal
Jersey Agricultural and Horti-
cultural Society:

Breeders -believe k would be
wrong-to threaten the purity of
the Island breed for 4he sake of
an experiment Jflwt could prove
unprofitable. They see semen
imports .as opening a chink in
the island's defences.

’ Jersey's' t ' government, in
defence of. breed purity, has
retained an egeoM ban on
cattle imports, despite EEC
regulations.

Breeders’ fears have clearly
not been allayed by assurances
from Mr Stan Morel, president

of the Jersey Fanners Union.
He says that exports of cattle
to the UK, U.S. Canada and
other markets would not be
endangered by starting beef
production on the island.

In Guernsey, a pilot scheme
to produce a cross-bred beef
strain from imported Charolais
semen was begun 10 years ago,
although, production is limited.

Meanwhile, Jersey’s Depart-
ment of Agriculture is to make
up its own mind about beef
semen importation .after “im-
partial research,” and will
report back to the island par-
liament ...

Rain

damages

Indian

wheat

By K- K. Sharma m New Delhi

UNSEASONAL rain in the
wheat-growing belt in north-
ern India last week caused
severe damage to the winter
- crop, a large part of which
* had been harvested and was
lying In open fields awaiting
threshing.

The Indian Government has
sent study teams to the main
wheat-growing states of Pun-
jab, Haryana and Uttar' Pra-
desh. There are fears that
about 30 per cent of the
wheat soaked by the rain has
been damaged. The loss could
be more than 2m or 3m

This follows earlier losses
in the season when heavy hail
and rain damaged the stand-
ing crop. There is therefore
no chance of getting in the
j bumper 33m-tonne wheat crop
' hoped for.

i- . With foodgrain stocks
already below 11m tonnes,

1 .'the Government will soon
have to decide whether to
import more wheat this year.
Many food experts feel that
imports are inevitable if the
Government wants a mini -
: mum buffer of 12m tonnes
aqd- to maintain supplies to
the public distribution
system of ration shops.

S. African maize
forecast up

PRETORIA — The third
offieial estimate of South
Africa’s 1981-82 . maize crop
has heen -revised upwards to
8.53m tonnes from the second
estimate of 8.42m tonnes, the
Agriculture Department said.

' The third estimate, which is
based on conditions at the end
of April, is, however, sharply
down from 1980-81’s record
outturn of 14.64m tonnes.

Grain sorghum output is
forecast little changed at
297,000 tonnes compared with
last month’s 296,000 tonnes
projection, but is sharply
.below last season’s 552,000
tonnes crop.

AU South African summer
cereals have been adversely
affected by a -protracted
drought in main growing areas
this year. Reuter

Preparing catfish for
the UK dinner table

TO EDUCATE the tastebuds of
a nation to accept a new fish
on their dinner tables seems
a tall order. To change the
habits of the fish to suit the
tastes of the consumer appears
even more difficult But this is
what has happened to the
American catfish.

The catfish, a relative of the
barbel, is a scaleless warm
water river fish. La Its wild state
its habitat is the mnddy bottom
of rivers in the south eastern
states of the UiL, from the
Mississippi delta to South
Carolina.

It is a scavenger, using the
“whiskers" that gave it its
name to stir up the mud from
which it feeds. As such its
fieri) has a “ muddy ” taste.

Now catfish farmers in the
U.S. have completely changed
the .catfish’s habitat and eating
habits, which has resulted in
the ugly creature once caught
by Hucklebery Finn changing to
a fish acceptable to- American
palates, and, it is hoped, to UK
diners.

Now the fish are farmed in
man-made freshwater tanks fed
by artesian wells. In the
Mississippi delta, eastwards and
northwards through South

BY 5ASA EVANS

Carolina there are 30,000 acres
of these ponds.

The' average size of the ponds
owned by Welfed Catfish Inc,
the company currently attempt-
ing to bring the fish to the UK,
is 20 to 4§ acres. Each pond
has constantly changed water to
a depth of 2 ft to 6 ft. fed by
28m gallons of artesian water.

Once the catfish eggs hatch,
food is floated on the surface
of the hatching tanks. This food
mat is made up of a paste of
soyabean meal, maize meal and
grain. The young spawn are
forced to feed on the surface
or die.

Once surface - feeding is
established tbe young fish are
transferred to larger ponds
where their growth is dramatic
as they are voracious feeders.
Tbe ratio of food absorbed to
body weight is 1.7 to 1, com-
pared with conversion of cattle
of S to 1.

On reaching commercial
weight of 1 lb to 14 lb after
about 18 months, Welfed
harvest the fish by sein netting.
To catch the fish in such large
areas of water, in had weather
the company frequently uses a
helicopter to lift out the netted
harvest

The fish are skinned and

filleted by hand, as j\he fish
'farmers find mechanical .pre-
paration too wasteful.

Consumption in the U.S. has
risen in the last 14 years to
100m lbs a year. Welfed T>*o-
-duces about 450,000 lbs- per 1
week, or 25 per cent of tota-l
U.S. output. Now the company
■ hopes to create a European
market, and has run successful
trials in restaurants in Switzer-
land and London.

Mr Jon - S. Brird. who hopes
to sell irp to 20,000 lbs a-- year in
the next two years in the UK,
plans to import the fish *y sea,

. ready frozen, filleted and
packed in the U.S., to sell ,
through supermarket outlets.
He is at present experimenting J
in smoking whole, unskinned
fish in his east London smoke
house, and says the result is a i
smoked fish not unlike budding.

One of the greatest obstacles
he faces in persuading the .

• British consumer to accept his
product is its name: strict EEC
rules of nomeclature and the
Trades Description Act have so
far defeated attempts to give ;
the fish a more palatable, name.
But after trying “ Mississippi
Soul" (sicl on the public, he
will doubtless find his fish an
acceptable market image.

Outline agreement on tea pact terms

GENEVA — Tea exporters and
consumers have agreed to work
towards an International Tea
Agreement with export controls
as its main weapon to fight
falling world tea prices.

A preparatory meeting here
last week sketched out broad
terms for tbe quota mechanism
and ways of determining when
prices rise high enough to allow
more exports or fall to the point
where tea would be withheld
from the market

It left open for further study
the question of a buffer stock
to store tea when the market
is depressed. Third world pro-
ducers have supported establish-

ment of the buffer stock while
industrialised nations consume
jug most of the world's traded
tea opposed It

The U.S., the only one of
the 43 countries here to express
clear dissatisfaction with the
talks, said it opposed any
measures designed to influence
supplies or prices.

Tea - prices have fallen .by
30 per cent on the world market
over the past 10 years, under-
mining the export earning s of
producer countries!

The United Nations Con-
ference on Trade and Develop-
ment (Unctad), which hosted
the tea talks, will probably have

to organise two more meetings .
of tea experts before the issue
can be brought to a negotiating 1
conference, Unctad officials said.

1

No specific prices were men- •
tioned, but the .agreement is
expected to contain, minimum
and maximum prices which »
would be adjusted annually.

A global export quota, to
apply to all producers exporting
more than 10,000 tonnes a year,
would be worked out by pro-
ducers on the basis of ‘expected
world imports for the next year
and then distributed among
themselves.

Reuters.

i

BRITISH COMMODITY MARKETS

BASE METALS TIM ! Official i. - Unofficial! -

COPPER VALUES tost ground on the
London Metal Exchange ao a ratty in
sutrthog against the defier. coupled with
a poor opening on Com ex depressed
forward meta l . from €883 to a . closing
level ol £875. Trade support sustained
. Lead which dosed nt. -£330.5,. wMfa
. Zinc was. ftnatfy -.£420. shot £425.
i Aluminium UH to its tawest-evor level
on the LME ol E552, reflecting the re-
covery In alerting and the trend in
copper. Nickel clipped to £2,880. Tin
fell to £7.120 on renewed nervous sell-
ing but raffied to close at C7,t40, wth
high grade at £7,150. owmg to a n-
sumpeon ol butter stock support.

['"jumT - i-Tor pTriu +“or

COPPER j Off icial — Unoff icial — t

| * £ «

gBST 85 1.5- .5 -I* 846-7 -7.75

3 mths S80-.5 -2.5 876.5-7 -7
Settle m’t B51.5 -1.5 —

Cathode* I

Cash . B41.5-3 -3 838.5-9 j-6.fi

3 months I 871-2 -5.25 868 .5 ’r- 7

Settle m’t 848 —3 — |

U^. Prod.! — I — T7-8I i '

Anaigomated Meraf Trading reported
that in the morning cash higher grade
traded at £850.50. three months- £883.00, .
82.50, 82.00, 81.50. B1.00, 80.00, . 80.50.
Kerb; Higher Grade, three months
£880.50. Afternoon: Higher Grade, three
months £877.00, 76.50, 76.00, 76.50.
KBrt>: Higher Grade, three months
£876.50, 76 00, 75.50. 75.00. Tumovar
, SI&25- Id ffineS . “ . * ~ '.' ' ' " ' ‘ • ' '.

- , Tln^Mbmfitg: Standard! three months
JE7.160, 50. 40. Kerb: Standard, three
{months £7.140, 30.' 40. A+K>™°™:

(Standard, three montha £7.140. 20.
■Kerb: Throe montha C7.125. 30. 40.
fHigh Grade, throe months £7,140. 50.
iTtmvoven 2.180 tonnes.

INDICES

financial times

May" l7|May~ Id foorrtli aabjYear ago
859.50 | 241.76} 245.51 [ 852.94
(Base: July 1 1952=100)

MOODY’S

May^TMay i4 Mo nti; ago] Year" ago
1007,8^1006.9 1 697.2 1083 0

(December 31 1531 =100)

mi nit i

COMMODITY
BROKERS .

Specialists in

Commodity and Currency
Discretionary Accounts
Minimum account size.
£25,000
Contact

Mark King or Jeremy Metcalfe
Commodity Analysis Limited
37/39 St Andrews Hill
London EC4
Teh 01-236 5211 . ,

CLUBS

*m. +or pjtu +or
TIN Official t - Unofficial —j

-High Grade . £ l- £ 1 £ £

Cash 7080-80 j-47.5' 7015-85 -»

3 monthsi 7130-50 M.S.5 7120-5 -SO
Sattlem’t 7030 MS . —

Standard J

•Caah....... 7080-30 ! -47i, 7015-80 -SJL5

3 months 7130-50 ■ -5Z.fr 7120-5 T 50
Sattlomtt 7030 -46 . -- - ......

Straits E.. **29.54 S ■

MewKorw — . ;

TTf~ i aum'.~l+ of- ~ +~or
LEAD 1 Official j ~ ' Vnoinciol -f

i fc"i * fT

Caah 318- .5 >6.62: 318.9 *4

.3 months 530, 5-1 .-*4,5 331.5-2 i+4
Ssttlem't! 318.5 .45.73' - | .....

ths. spot „ ' - ; ™

Load — Morning: Cosh £316.50. 17.5Q.

16.00. three months £328.50, 29.00,

30.00. 31 .CO. Kerb: Three months
£331.00, 30.00, 30.50. 31.00. Aftemomn
Three -months £331.00. .31-50. . Kerb:,
Three months £331.00. 31.50, 31D0.

30.00. Turnover: 29.975 tonnes.

' T "a.nT -f-’or ~ p.m. -for

.. ZINC ] Official i — {Unofficial! — t.

£ I £ ! £ ! £

Cash : 416-.5 +6 .413.5-4.9 *5.75

3 months; 422.5-3 -vS.S 42I-.5' v4'
S'ment..: 416.5 +6 < —

Primw'tsl — 1 -ft- 1 *35 I ......

Zinc— Morning: Cash £417.00, three
mentiva £420.00. 23.00. 23.50. 23.00,
24.C0. Kerb: Three months £423.50.

23.00. 23. 50, 24.00. - Afternoon: ’ Thrae
months £423.00. 22.50, 22.00. 21.50,

21.00. Kerb;.. Three months . £421.00.
20.0ti. Turnover. 6.S75 tonnes.

Aluminium — Mom mg: Cash £537.50.
three months £581-00, 59.00, 59.50.
Kerb: Throe months £559.00, .58.50,
5JB.OO. Afternoon: Three months £556.00.
55.50, 55.00,. 54.50. 55.00. W OO. 5B.00.
Kerb: Three months £553.00, 52.00,

DOW JONES

"Dow ! May' ’ May - IMonth l" Year
Jones r 17 14 i ago I ago

Spot ,126.74 ;125J0 |125.69: — .
Futr e ■ 18 8.16 1 128.83 18 9

(Base: Oocembar 31 1974 — 100)

Alumlnm «jm. +or p.m,_ +or

Official — Unofficial — t

i £ £ £

Spot 536.6*7.3-1,25 531.5-2J^4J

3 months 659-. 5 -U 853-4 -4.75

GRAINS

52.50, - 53L00, 53.00. Turnover: 9,750
unnn. .

NICKEL

a.m.

+ or p.m. |

1+ or

Official

— . Unofficial

-1

Spot .......

3 months

-1

2880-80 +3 J 2805-16
2925-89 +9 Ji 2675-80

— !fi
-40

REUTERS

May 18[May 17 J M'nth agd* Y'ear ago

1571. 1 i 157o!6!~T59fl.b | 169 0.2
(Base: September 18 1931*100)

outlived the

icv ol ran - J»I«V »” a w » !l i£ ^
iSLiram 10-3.30 am. Cisco- «nd ti h»

PERSONAL

FACT

ONE IN A HUNDRED
PEOPLE HAVE IT and know
it, one in a hundred have it
and don't know it —

DIABETES

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OFFSET 2 COLOUR

PERFECTION MACHINE

In rvnalno condition. Rdand/Heldei-
bers/Mano or Miller - in size 30 . x
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not later than 1973. Kindly send
yew oMer to:

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Ntohsl — Morning: Three months
£2330, 25. 26. Kerb: Three months
£2.922. Afternoon: Three month* £2.920,
15.10, 2^90, 2:900. 2,890, 85. 80. Kerb:
Three months £2,880. 85, 80. Turn-
. over: 312 tonnes,

* Cents per pound. % MS per kilo,
t On previous official dose.

SILVER

Silver was fixed 0.9p an ounce
higher for spot delivery in the London,
bullion market yesterday at 371 -Op.
U.S. cent equivalents ol the fixings
-were: spot 669.3c, down 6.7c; three-
month 6 9 2.9c, down 6.6c: six-month
715.8c. down 6.7c; and 12-month
. 766.7c, down 6.6c. The metal opened
at 368-371 (667-671 c) and closed et
368-3 72p (699-673c). .

SILVER Bullion + oil LM.E. +or
per fixing - — M.' —

trojr «w- -P ri oe~' v: • .

spot ynjoop rtB.w-37o.gop -us

3 month*. 388.62p nafl Ml.TOp -1,05
G months. 394.65p 1-1.1 H — — —

12mont hs|430 .35p H -l.SS) —

LMGE^-Tu mover S3 (38) lata ol
10,000 oea. Morning: Three montha
■383. 82.3. B2. Kerb: Un traded. After-
noon; Three montha 385.5, 82. Kerb:
Three months 381.

COCOA

Futures continued to ease as fresh
chartist selling caused prlesa to trade
ai recent lows. Producers remained
withdrawn from cur ent levels while
offtake among consumers was again
scarce, reports Gill and Dufiim.

-rtoo- lYeatfday »| + or S Business

COCOA i Close > Dotur*

riarkaut opened lOp up, apart from
May hatiay ex unchanged! Ofd crop
remained steady duting morning ses-
sion, only to be met m the afternoon
wltb good shipper and commercial aell-
, ing due to p roll Halting. Wheat dosing
55-75 down: May . barley 20p . up but
well below .its Wgha. New crop wheat .
traded good volumes, closing 15-30p
up. New' crop barley' unchanged to 5 p
up on tbe day, Adi reports,

WHEAT - BARLEY

Yasterd'ysj -for Yott'nfyaf+or
Mirth close — close j —

M*y- 180.20 111.10 i+O.20

July- 132.00 '-0.75 — . —

Sept. 109^6' l+O'JM 108 J5 -
Nov... 113.45 . +0.50 108.90 +0.D6

Jan... 117.55 +0.t6 118.85 -0£5

Mar^. 130.75 1+ 0.15 116.25 1.

Business done — Wheat: May. 121.25-
120J8). 'duly 123.-90-122.90, Sept 109.50-
1 09.45. Nov 113.45-113.20, Jan 117.30-
117.15. March 120.70-120.65. Sales: 150
Ices of 100 tonnes. Barley: May 111 30-

111.00, - Sapt .108.25-105.10. Nov 108.90-
108.85. Jan 112.90-1 1Z80; March
116.30 only. Sales: 50 lou of 100
tonnes.

. . HGCA — Locational ex-farm spot
prices. Feed barley: S. EdSt. 113.30,
S. West 112.70, W. Mide.- 111.50,
N. West 113m The UK Monetary
Coefficient for the week beginning
Monday, May 24 (based on HGCA
calculations using five days' exchange
rates), . is expected to remain
•..unchanged.. • • •

- ' LONDON ~G RAINS — Wheat: IT.S. Dark
Northern Spring No .1. 14 por cent.
May 111.75, June 111, July 110 tran-
shipment East Coast seller. English
Feed fob May 122, Sapi 113, Oct/Dec
111.50 East Coast. Maize: French May
138.25 transhipment East Coast sellar.
South African Wh Ho /V allow Oct/Dec

96.00. Barley: English Feod fob Aug
107, Sept 108.25 East Coast.

RUBBER

May- 910-13 -6.5 917.10

JuB 939-40 i-12.0 949-36

Sept. - 969-70 |-a.5 975-65

Dee 1009-10 -9.0 1017-05

March 1040-42 -6J 1047-38

May 1063-65 -a.5 1070-63

July J 10B4-87j_-5J) 1086-85

" "Salas: 2,581 (27258) lots of iG tonnBS.

-1CCO— Daily prices for May 18: 76.57
(77.86):. Indicator price lor May 19:
78.39 ( 73.19).

COFFEE

Robuetaa failed to respond to a late
.ratty in New York as early trade selling
contributed towards an easier trend,
reports Draxel Burnham lafflben. Con-
tinued pressure triggered some stop-
loss orders and the decline accelerated
to briefly touch; the psychological
support' at 1100 basis July.

• : [Yesterday's, - ' C~

COFFEE Close 1+ or B minus*

1 — Done

- Ifi per tonne;

May 1110-13 1—5.5 [1185-06

July 1104-05 —17,51136430

Geptu. 1069-70 -19.0i 1094-66

Nov- 1055-80 -16.011078-57

January 1056-57 -15.0.1075-56

March. 1053-56 1-8.5 ,1068-50

May 1040-56 1-10.01 -

Safes: '3,733 (3.0ST) fots-of 5 tonnes

ICO liidleatbr prices for May 17
(U.S. cants par pound): Comp, dally
1979 120.14 (121.05): 15-day average
122.40 (122.65).

GAS OIL FUTURES

A stronger dollar brought physicals
and futures down during the morning.
Later futures continued to fall, rallying
a - little on the New York opening before
dropping again to reach the Iowa on
the cloae . report* Premier Man.

' VYaat'day's] -f- or] - Budnaia

. Month | ; _ J Done

The London physical market opened
slightly easier- attracted little interest
throughout the day and dosed quietly
steady. Lewis and Peat recorded o
May tob price Tor No. t RSS in Kuala
Lumpur of 207.00 (208.C0) cents 8 kg
and SMR 20 188.5 (182.0).

' No. 1 * Yeat'r’ys Previous Business
RJ3.S. close . close Done

June.....

July

Jfy-s«pt

Oct-Dec

Jan- Mar

Apl-Jne

Jly-S«pl

Oct- Do o

J'n-Mch

B5.M-fi6.B0!

BBJ20-SB.S0I

5fi.4B-38.90

B7.GH-fi7.70

B9JO-B9.BO

Gt.M-6l.E0

B2.9fl-di.Z0

64.9fl-BS.flQ

6830-60.70

Sales: 167 (70) lots of 15 tonnes,
15 ( — ) lots at 5 tonnes.

Physical closing prices (buyers)
ware: Spot 54.50p (same): JunB
52JUp (same); July 53.25p (53.00p).

SOYABEAN MEAL

The market opened higher on
commission house buying, reports
T. G. Roddick. Prices remained firm
with weaker starling encouraging short
covering and closed with gam s of .£7.

[YesterdyaHr or: Business
Close i — . Done

fi . i

por tonnej l

June. 1BBJD-S5.fi +1.10 -

August. J 54. 70-36 Jl +1.16 15BJO-5S.OO

October..... 154.9936,0 +0.70 1Bfi.GD-S5.00

Dec tBB-MHU+Q.BO IBfi.MSSJW

Feb 140 JO-42JI +0.25 —

A^rll J142JM-46.0 +0,75 . 142.50

Salas: 162 (136) lots of 100 tonnes.
-Soyabean -Oil-— The market opened
U-S.S2 lower on profit-taking but
renewed commeroiai support firmed
prices which closed with small gains,
closing prices (U.S.S oer tonne): June
525.00; Aug 525.00-522.C0; Oct 52S.C0;
• Dec 532.00-531.50: • Feb S32.00-631 50;
April 532.00. Turnover. 38 (471.

"!•»«*! i ••

per tonhe L

May- 299.78 l -5^5SD9J»0-W.7B

June. J 290.25 UB.75 S®2J0-fl1:75

Julyt..:."... 889.00 U7.MjSMJB-68jO

ssstz a*'t4#SB-

Oct. 293.00 h-fij»|297.B0-82.!5

Nov-,- 295JX) i— 6JH1 —

Dec-..—,.- 268.00- 1 — 9J)0l --

Jan,... 299JJ0- l-g-Mt —

Turnover. 1.821 (Z.B54) lota of 10Q
tonnes!

i - 1 ^ - WOOL FUTURES

May seller 385. nil; Aug 390, 383. nil:
Oct 399, 402, 402-401; Dec 402. 407.
nil; Jan 40S. 408, ml; March 416, 420.
ml: May 425; 428. ml; Aug 433. 438.
• 43/; Oct 437, 441. 441-440. Sales: 7.

SUGAR

Trading was confined within a £3
range of prices in another quiet trading
ana g ion. The postponement of the Iraq
lender together with the improvement
in. sterling against the U.S. dollar
produced a weaker tone late afternoon
when August traded as -low as £116.75,
reported Ctem ikow.

- No. 4 Yesterday] Previous Business
Cut- .close close done
treat

£ per tonne

Aug |in,EM7.7&:118.S0.ig.10;m0HB.76

Oct 125.60-22.75! 125.00-25 J(S , 1 24.75-22.00

Jan-. ... ■ 125 JtO-27.00 I2G JM40 JH): —

March IBB .GG-8336. li4 > Uh5SJ»jlEfi4MB^S

May 156^0-57.00 158.l»-58J0/n8.DM8.«l

Aug — 140 .09-42,50. 1 40,75-46^5 -

Oot_„. 143 JIM7.50; 144^048.75!

” Salas: 1.687 ( — ) lots ol 50 tahnes-
Tate and Lyle delivery price for
granulated basis white sugar was
£374.00 (same) a tonne lob for home
trade and £218.07 (£214.59) for export.

International Sugar Agreement (U.S.
cents per pound) fob and atowad
Caribbean ports. Prices lor May 17:
Daily price 7.89 (7.67); 15-dsy average
8.47 (8.53).

LONDON DAILY PRICE— Raw suger
£112.00 I £109. CO) a tonne cif May-June-
July shipment. Whits sugar daily
price £143 00- (£140.00).

COTTON

54.80-Sfi.00l S5.m-S4.80
65.70-06.10. 56.50
B8JB3BM' BBM-BS.00
67 -20-67 .40 B7.7fl-57.ifl
6G.llI-5fi.3B 5fi.60-58.40
BO.70-8 ljffl —

8S.M-B2.M -

84.40 -04 JO -

GBjm-BGJfl 9630-66.50

- SYDNEY WOOL— Close (in order:
buyer, seller,, business). Australian
cents per kg. May 548J), ,569 A 552.0-
540.0: July 545.0, 550.0, 545.0-542.0;
Oct -624.0,- 924.5. 524.0-522.5; Dec

53.0, 529.0, 529.0-527.0; March 532.0,

533.0, 532.0; May &36.0. 538,0, untradBd;
July 543.0, 54S.0, 543.0-542.0: Oct 542.0,

544.0, 542.6. Salas: 219. '

LONDON NEW ZEALAND CROSS-
BRBOS— Close (in order; buyer, sailer,
business) .New Zealand cents per kg.

UVS1POOL — Spot and shipment sales
.am nun led to .94 tonnes. Caution re-
mained the keynote for business in tbs
raw materiel. Numerous types were
sought, but the offtake was irregular
and mostly m African and Middle
Eastern styles.

POTATOES

LONDON POTATO FUTURES— The
market eased further, despite opening
slightly steadier, closing at the lows
midday. Afternoon trade was thin,
with prices rising towards the cIdsb
on light profit-taking, reports Coley
and Harper. Closing Qrjecs: Nov 05.20,
-0.30 (high 65.70, low 65.00); Feb

74.60, -0.90 (high 75.70. low 74.10):
April 88.30. -1.00 (high 87.60. low
86.00): May 38.40. -0.60 (high 99.60,
low 97.70). Turnover: 245 (289) lots
ol 40 tonnes.

MEAT/VEGETABLES

SMITH FIELD— Pence per pound. Beef:
Scottish kitted --'dos K.2 to 87 2: Ulster
hindquaners 98.0 to 101.5, forequarters
56.0 to 59.0. Veal: Outch hinds and
ends 119.0 to 124.0. Lamb: Eng Hah
small (now season) 85.3 to 53.3,

medium, (new season) 84.0 to 88.0,
heavy (now season) 30.0 to 84.0^

Imoorted; New Zealand PL 52.0 to 64.2.
PM 61.0 to 63 .n. PX 61 5 to 63.0, YL
.60.0 to 52.0. Pork: English, under ICO lb
36 0 to 55.0. 1 CO-1 20 ib 43.0 to 54.0.
120-1 BO Ib 39.5 to 50.5.

MEAT COMMISSION— Average fat-
stock prices at representative markets.
GB— Cattle, 101. 67 d pfir kg Iw (—1.80):
UK— -Sheep. 182. 54p per kg est dew
(-22.98): GB — Pigs, 75.06p per kg Iw
(-0.63).

CO VENT GARDEN— Prices for the
bulk of produce, in sterling per
package except where otherwise
slated: Imported Produce: Oranges—
Cypriot: 15-lg Valencia Lates 3.20-
5.50: Jaffa: 20-kg Valencia Lotaa 56
6.25. 60 6.25. 75 6.25. 88 5.85. 105 5.50.
123 4.85, 144 4.50, 158 4.50: Moroccan:
16-leg Valencia Laws 48/113 4.00-'6.50:
Spania: Valencia La lea 6. 00- B. SO.

Lemons— -Spama: Trays 5-fcg 40/50

I. 40-1.80: Jaffa- IB-kg 50/105 4.50-
5.00; Ouispan: 15 1 rkg 80/120 5.00-6.00:
Italians: 100/120 3.504,00. Grapefruit
— 4J.5.: 16/1 7-kg. Florida Ruby 8.50;
Cypriot: Smell cartons 17-kg 3.20-5.00;
Jatfu: 20- kg 27 4.25, 32 4.45. 36 4.45,
40 4.65. 48 4.95, 56 4.95. 64 4 .75.
75 4.50, 68 4.00. Apples— French:
Golden Delicious 9- kg 6-00, 18-kg
10.03-11.00, Siarkcrv/nson 10.00-JJ.50:
New Zealand: 18-kg Cox’s Orange
Pippins 14.00-16.00. Rad Delicious
12.00-13.50, Golden Delicious 10-00-
12.00: Chilean: 18-kg Granny -Smith

II. 00-12.00; S African: Granny Smith
12.00-13 00. Golden Delicious 12.00*
13,00. StBi+crltnaon 11.50-12.50; U.S.:
18-kg Red Delicious 9.00-K.00. Pears
— S. African: 15-kg Packham’a
Triumph 9.00-10.50. Cornice 34-lb 9.59-
11.50: Italian: Par pound Passacrassane
0.14-0.16. Peaches— I araall: 18/27 S.OQ 1

3.60. Grape*— S. African: BBrfinka
5.80-6.00: Chilean: 5-kd Thompaon
8.20-9.00, Red Emperor 5.50. Almeria
B.00-8.50 Strawberries— Spanish: 8-or
O.2S-0.35; llalun: S-oi 0.3B-0.40;

PRICE CHANGES

In tonnes uniats otherwise, stated.

May 18i + or Month
1988 I — no

Meteli

Aluminium

FreeMKt —

Copper .....

Cash h grade...

3 mths..™.™.
Caah Cathode..

3mthe.»— ....
Gold troy or ....

Lead Cach

* mths—

Nickel

Free mML....._

£910/815 £810/515

^970/1000—5 j B8B6/1B 16

£846.50

£876.75

£858.75

£868.25

19337JI5

£318.5

£331.75

£3974 .

25Si26Sc

— 7JW;£887J5
-6JG,£853
— 7J»£882
+2. B75’ 6348.75
+4JI (£318.5
+4.0 %332.2&
I ‘£3926
;::::5iii«/*75o

GOLD MARKETS

Gold showed little change in
the London bullion market
yesterday, falling to $336}-
S337J. It opened at 53353-336^,'
the lowest level of the day, and
touched a peak of $33^333$. The
. metal was fixed at $337 JO in the
morning, and §338.00 in. the
afternoon.

In Paris the 12i kilo gold bar
was fixed at FFr 66,250 per kilo
($340.00 per ounce) in the after-
noon, compared with FFr 66,250
($341.01) in the morning, and
FFr 85,500 ($340.93) Monday
afternoon.

In Frankfort the 121 kilo bar
was fixed at DM 25,275 per kilo

($338.98 per ounce), against
DM 24,970 ($339.01), and closed
at S337J-338J.

In Luxembourg the 121 kilo
bar was fixed at the equivalent
of $336.75, compared.* with
$337.80.

LONDON FUTURES

Month ]Yest’rciay , sj+or j Business^
Montn i close I — | Pone

j £ per troy ' " :

. ounce • ; • '

Augurt....,i 19 1.1 5-91. 301+11. 160 ! 1B2.5O-0fl.96
Sept- mb’ r? US; 70-92. Mi+0J2B1 T95.80
October.. .' 194. 70.94.B5 -+0.426- 195JB-9B.25
Novemb ari 19 6.70 9B.Bfll+il.42 B f - _

Tumovar: 834 (811) Iota- of 100
troy azs.

Platln’mtr oz'y£260 i _. £280

FreemkL £175 bBU8.1S

Quicksilver) ... 9360:375 J5370/S&’

Silver troy ox_. 37 1.0 O>j +0,90 406.20p

3 mtha. 383.68p +lJIS419.80p

Tin Csah — *7080 V-aMj£713B.5

'3 mths £7193.6 1— f5fl.Di£7368

-3 mths £7183.6

TungstenSSLO I b| 6 106.98

Wolf rm 82j4Nbs||lD8/m

23 no Cash (£414 JO

3 mths

Gold Bullion (fine ounce*

11860(9001

9198(107
16

18.75
9890/800

Oils I I

Coconut (Phi D |8600u -15 #497.5

Groundnut — |8640u (—10 #685

Unseed Crude ; I t

Palm Malayan IBlOv j ||500

Seeds j I i

Copra Ph lip ...IS535 I JS330

soyabean (U.S.)|3Z75 (-3.5 19369.5

Grains '

BarleyFut Sep £105^6 +0.40^103.45

Maize ; fel35.5

Wheat FutJiilyl£132.90 +0,7fi[£133,40
No.3HardWlnt( t | t

Other i

commodities 1
Cocoa shipf b

Close. _ _. #33 55,-337 i*

Opening ......... 9335V3361S

Morning fixing | S3 37. 50
Afternoon f1xingl#338 .

Krugerrand. #34814-347

lr2 Krugerrand.. #i78i4-17Bi4
1(4 Krugerrand... SB05&-9154
lilfi Krugerrand ©37-38

MopWeaf *3455,-3465,

New Sovereign*. >#81 is -B2
King Sovereigns IS9&-96

Victoria 8ovs 895-96

French 20 s.^ 670-00

60 pesos Mexico 9412 1,-4145,
10U Cor. Austria #388-33012
98 -< Eagles #430-435

(£186-18612) '$33711-33812

(£185 is 186) #337-33754

(£186.981)

(£187.050)

18337.25
; #538.50

(£1903,-19114) S347i z -349i2
(£901,-985,) S1791J-1BOI,

{£50-501*) . 8915,-985,

(£30H-21> - 837ls-38i a

{£19012-191) 83471* -340 La
(£45-451,) 382-83

(£5212-53) ‘395-96

(£5212-53) ,895-96

(£3 B >2-44) ‘S70i 2 -S0i2

(£22 7 1 ,.228 ifl)i $4 143, -4 17 1,
(£18054-182 >4)S330-332i|
(£237-2395,) <#433438 '

(£185-18512)
(£184 >2-185)
(£184.451)
(£185.408)

(£190l2-Z91i 3

(£9854-9914)

{£50 is- 51)

(£2013-21)41

(dMlg-lBllg)

(£45-45>s)

(£52-521*)

(£52-53 1 2 ]

(£3834-44)4)

(£228)4-3891:)

(£18112-1835,)

(£2381,-241)

-12,Qf£l,OOe

AMERICAN MARKETS

NEW YORK. May 18. Poric Bellies— May 88.B5 (90.55), July
THE LIVESTOCK, .complex . . rntished 4^ 35, V, ^ ™^?' 85 .* Z '

sharply lower on rumours of a lift in ‘Z?*L May

Future Julyl£939.5 t— 12.at£fl45.6
Tee Ff July IE1104.5 U.T7.5S1122.!

Cotton A-Index 76.75c — a.iO|7I j!5e

Gas Oil June,.- tSBSJiS ~9.7fi|s272

Rubber Utile}... 54. 5p :56.75p

Sugar (Raw)._.t£ll£u -. 3 i£129

Woolt’psMa kl.|397p Wlo jfljlpkjlo

t'Unquoted. vJune. u Msy-June.
t Per 78-lb . flask. * Ghana cocoa,
n Nominal. S Seller, b May-Juna-July.

Belgisp: 0,40-0.45; U.S.: Treys 12.00.
Cherries— French: Per pound 0.80-1.00:
Spanish: 0.80-1.00. Melons — Senegal:

English Produce: Potatoes— Per 554b.
Whin 4,80-5.50, Red 5.00-5.80. King
Edwards 4.80-6.00. Per pound, new
0.20-0.25. Mushrooms— Pa r pound,

open 0.50-0 60, closed 0.80-0.80.

Apples — Per pound. Bramloy 0.20-0.34.
Lettuce— Per 12, round ' 1 .80-2.60, Cos
10's 3.00, Webb's 12’S 2.60-2.80,

Onkma — Par 5S-lb 40/80mm 2.60-3^0.
Spring Oniont— Per bunch 0.10-0,12.
Carrots— Per 26/28- 1 b 2.00-4.00, Bei|t-
roots— Pe r 28-lb, round 1.00-1J0, long
1.20. Rhubarb— Per pound, outdoor
0.06-0.10. Leaks— Per 104b 1.20-1.50.
parsnips— Per 26/28-lb 1.20-1,80.

Cucumbers— Per package 2.BO-3.20. *

Greens— Per 30-lb Kent 2.40-4.00.

Tomatoes — Per 12-lb box D/E 4J0-4.80.
Cauliflowers— Per 12, Kent 3.20-4.80.
Asparagus— Per pound 0.80-1.80.

. Strawberries— Pet 8-az 0,40-0.80, 4-ox
0.20-0.30. Celery— Per 12/30 5.00-7.00.
Ras pb e rr i es Per 4-0 z peck 1J50-2.00.
*

GRIMSBY FISH— Supply moderate,

demand good. Prices et ship's side-
(unpro reused) par stone: Shelf cod
E4.00-E4.50. codlings a^>-n.40; large
haddock fid^O-ri.no, medium C3.80-
C4.40, small E2_E" £3.20: medium plaice
£6.30. best smell- £4.0O-£4.EO, skinned
dogfish (medium) £3.50: lemon sols
(large) £8.60, (medium) £7.60: roe Irtish
£1.90-£24»: saitha £2.80.

the ban on Danish exports to Japan.
Copper came under heavy pressure
from stop-logs celling after financial
instruments broke sharply'. Cocoa sold
off moderately on pemierent technical
selling. Heinoid reported.

Copper— May 68 SO .' (70.10), June

68.50 (70.55). July 69.70-69.85, Sept
71.60-71.60, Dec 73.90-74.10, Jan 74.80,
March 76.40, May 78.04 July 79.50,
Sept BO. BO-81, 00. Dae 84.10, Jen 84.00- -
84.50. March 85.70.

•Gold— May 340.8 (334.6). June 341.5-
342-5 (338.2), July 345.6, Aug 349.0-
350.0, Feb 371.7. April 379.5, June
387.5, Aug 3S5.6. Oct 403.8, Dec 412.7.
Fob V20A.

•Ptstsnum— July 317J)-317J5 (309.3).
Oct 324:5-325.0 (310.0), . April 345.5.
Jtriv 358.5.

Potatoes (round whites)— Nov 79.0
(79.3). Feb 87.6 (88.0), March 92.1,
fid y*ii 105.8.

18 liver— May 670.7 (664.9), June

923.5 (667.7), July 680.5-883.0, Sept
699.0-700.0, Dec 722.1-724.0. Jan 731.3,
March 747.9, May 764.5. July 781.1,
Sapt 757.7. Dec 822.7. Jan 831.0, March
847.8. Handy and Harman bullion soot:

666.50 (673.00).

Sugar — No. 11: July 8. C7 -8.03 (8.221,
Sept 8.33 (8.49), Oct 8.55. J*n 8.90.
March 9.66-9.57. May 9.82-9.83, July
10.08-10.1D, .Sept 10.16-10.20. Oct 10.25.
Tin— 678.00-581.K) (585.00-588.00). .

„ „ CHICAGO, May 18.

L*rd — Chicago loose 22.50 {same),
live Cattle— June 72.75 72.9" (73.T21.
Aug 67.27-E7JS (67.92), Oct 64.10-
84.20. Dec 64.10-64.25. Fab 63.80-63.85,
April 64.10. June 65.75.

Live Hogs— June 62.4S-62.30 (82.90).
Juty 62^5-62.46 (63.35), Aug 51.83-
81.40. Oct 57.80-67.87. Dee 57.60-57.50.
Feb 53. 60-53. SO, Aprtt 50.00. June 51.80,
July 52.15.

# Make— May 268V 268^ (268M.

Jufy 238-2781, (277**). Sept 280**, Dec
284V284 1 *, March 297^-297**, May 305*,.

EUROPEAN MARKETS

ROTTERDAM. May 18.
Whut— (U.S, S per tonne): U.S.
No. 2 Dark Herd Winter, 13.5 par cent,
spot cil Ghent 200.60. U.S. No. 2 Red
Winter May 159. U.S. No, 3 Amber
Durum May 183. June 182, July 182.
Aug 184, Sept 188, Or 191. Nov 192.
U.S. No. 2 Northern Spring, 14 per
cent. May 183.S0, June 180.60. July
178, Aug 178, Sept 180, Or 183, Nov
185.

Miiko— (U.S. S per ionne): U.S.

Soya meal — (U.S. $ par tonne): 44 par
cant afloat 241-242. cif Amatardam 241.
244.5 traded afloat 237. May 236. June
235. July/Sspi 235, Nov-March 245
aellera. Pallets Brazil afloat 251-255,
cif Ghent 255 and 247.50, cif Rotterdam
252. cif Cham traded afloat 267. May
245.60, June 243.50, July/Sept ' 2<6,‘
Msy/Sflpt 248, . Nov/March 260 sellers.^
PARIS, May 18.

Coecp— (FFr Pflr 100 kfl): May 985-

No. 3 V allow afloat 134, May 133. June 995; July 1025-1036: Sept 1066-1070:

131.25. July 132, Aug 131.75, Sept 131,
Oct/Dee 130.50, Jen/Merch 138 sellers.

Soyabeans— (U.S. # par tonne): U.S.
No. 2 Yellow Gulf ports May 29, June
269 JS. July 270. Aug 271. Sept 271,
Oct .268.80, Nov 208.00, Dec 270.70,
Jan 276. Feb 280.25. March 283.50
sellers- - •

Dec 1105-1120; March 1150-1105: May
1190-1200: July 1215-1225. Sales at cell:
nil.

Sugar— (FFr par tonne); Jufy 14W-
1610; Aug 1600-1501; Oct 1470-1480;
Dec 1480-1485: March *574-1575: May
1815-1020: July 1BoO-1fi55. Sales at
call: 18.

■ Feb 75:25-75.50. March 78.00. May
75.60, July 76.10-75.25. Aug 74.75.

HSoyabeon Meal— May 190.4 (191.5),
July 193.0-132.1 (192.1), Aug 152.6-
1928, Sept 134.5. Oct T94.5, Dec 197.7-
197.6, Jan 200.0, March 203^-204.0.
May 206.5-206.7.

Soyabean Oil — May 20.63 (20.45).
July 20,59-20.97 (20 89). Aug 21.21-
21.20. Sept 21 .40, -Oct 21.55. Dec 21.34,
Jan 22.05, March 22.30-22. S5. May
22 55-22.E0.

tSoyabeans— May 662 ’« (ffilS). July
670-671 (668). Aug B74\-67V*. Sept
675. Nov 673=1-679, Jan 692=4-693. March
7064-707.

1 Wheat — May 352 (353). July 263’<-
3644 £382). Sept 379. Dec 3994-400,
March 4154, May 422-4224-

WINNIPEG. May 18.

5 Barley— May 127.40 (127.80), Jtfiy
127.20-127.30 (127.®) „ Oct 126J». Dec
127.00. March 12a.10.

S Wheat— SC WR S 13.5 per cent pro-
tein content cif . St., lawrenca 222.19
(222.44).

AH tents per pound ex-warehouee
unlaaa otherwise stated. • S cer troy
ounce. 1 Cents per . troy ounce,
it Cento per 56-1b bushol. f Cents
per P'-'h bus*?' >1 S Der short ton
(2,003 Vb). § SCan. per metric ion.
§§S per 1.0C3 sq ft. t Cents per
doien. J , * $ per metric ton.

Monday’s closing prices

tfCocoa— May 1560 (1622), July 1571
(1597), Sapt 1622, Dec 1582. Maicb
1736. May 1785. Jul 1818. Sales: 2.225.

Cofle*—" C " Contract: May 139.C0
(140.70), July 123.10-123.70 (124.79).
Sapt 1 18.50-1 18.CO, Dec 116.00, March
11 3.01 -11 4.50. May 111.00-113.00. July
108 -CO-1 14.00, Sept 107.00-113.50. Sales:
1,670.

Cotton— No. 2; July 66.75-66.80
{67.251. Oct 69 75 -69.80 (70.10), Dec
71.1S-71.20. March 73.00-73.10. May
74.10-74.50. July 75.10-75.50. Oct 76.10-
77 Sales: 7.850.

“Gold— May 334.6 (333.2). June 336.0-
336.5 (340.0), Juiy 339.8. Aug 343.3-

343.8. Oct 350.9, Dec 358.3, Feb 365.9.
April 373.7, June 381.7. Aug 389.8,
Oct 398.0. Dec 406.3, Feb 414..6

Orange Juice— May 116.75 (117.25),
July lin 95.121 00 1120.45). Sapt 123.90.
Nov 125.10, Jan 12840-126.70, March
127.80-128.10, May 129.20-129.50. July
1?n 60-120.90. Sept 132.00-132.30. Sales;
500.

•Platinum-^iuly 312.0-313.0 (322.6),
Oct 319.5-320.0 (33H3),-Jan 330.4, April

340.8. July 351.8.

‘ . „ CHICAGO. May 17

Chicago Itnm. Gold— June 336.0-336.3
(3398). Sept 347.4-347.0 1350.8), Dec
?K8.5, -March 389,4, Jone 3B1.0, Sept

392.8.

_ . ' WINNIPEG, May 17.
,4 B £ r J 27 ' 80 ri 30.00), July

f i’« J? 5 ' C=l 128 - 40 - Doc 127.20.
M;Th 129.10

5 Wheat — SCWRS 13.5 per cant pro-
unn.conteu.C4f 5u La«Vrence.222 4«

l

28

financial Tim^'WedhesdayMay 19 1982

Cospaofes and Markets

NEW YORK

Stock

May

17

37*

AMF

18

AM Inti

1*

ARA

27

ASA

AVX Cont

33i0

19*

Abbot Labs

30Ta

Acme Cleve..

20

Adobe Oil ft Gas.

10l 2

Advanced Micro.

26

Aetna Life ft Gas

40 *

Ahmanson <H.F.i

11

Air Prod ft Chem

35

Akzona

97*

Albany Int

2640

Alberto-Culv.

13*

Albertson's

28*

Alcan Aluminium

19

Alco Standard....

22

Alexander & Al...

27

Alegheny Int

283s

Allied Corp

35

Allied Stores

287 fl

Alli9-ChalmerB,_.

145ft

Alpha Portd

10* |

May

14

374
1 Big
14
371a
33
19Bg

514

207a

204

267a

4U*

114

356*

93*

2630
154
284
194
214
264
283*
374
39 >a
145s

K33

Stock

14

WTff!

32M

52*

69*

69*

22*

22*

26*

29*

22*

£2*

63*

W

WORLD STOCK MARKETS

Alcoa 25Je [ 26 Sh

Amal. Sugar 455 B l 46?»

Amax 25&9 , 26*

Amdahl Corp 21* , 224

Amerada Hess.... 31* j 22

Am. Airlines 175* , 174

Am. Brands 414 ' 424a

Am. Broadcast'^ 36 i s : 364

Am. Can

Am. Cyanamid....|

Am. Elect. Powr.:

Am. Express

Am. Gen. /nance.,

Am. Holst & Ok ...

Am. Home Prod_>

Am. Heap. Slippy 1 . 46 4
Am. Medical Inti. 226*

Am. Motors 31* | 3*

Am. Nat. Resces.j 34sa '■ 34 is

Am. Petflna ; 60 * 60

Am. Quasar Pet.^ 107, { 114

27 ' l 274
284 I 294
17 174

46* 474

40 40 <s

14 l 144
36* ' 37
464
224

Am. Standard..—

26*

4070

54.*

Ameteklnc.

28*

22*

AMP

Amstar j

Armload lnds_...

Anchor Hockg

Anheusar-Bh

Archer Daniels—.

54*

22*

24*

1550

47*

155,

Armco I 18 4

367b

404

645*

28

22*

54b,

22 *

244

15*

475*

157 8

187 G

Armstrong CK..... I 15*

AsameraOll ; 8*

Asarco 207,

Ashland Oil I 254

Assd.D. Goods — j 324

Atlantic Rich 41 4

Auto- Data Prg.... 25*

Avco

Avery Inti

174

25*

16

85*

205*

264

32*

417 8

25»,

173*

253*

Avnet ]

Avon Prod
Baker Inti

48

25i a

324

Balt Gas ft El } 263*

Ban Cal I

Bangor Punta
Bank America _

Bank of N.Y

Bankers Tst N.Y.i

Barry Wright

Bausch & Lomb
Baxt Trav Lob....
Beatrice Foods_|

Baker Inds -

Bell & Howell _
Bell Industries ..

Bendix

Beneficial

20 *
171*
18*
414
51*
155,
44 7 8
36
184
6

20 *

174

E2

18*

49

29*

33)0

263*

224

173*

18*

41*

31*

16

4S1|

36

IB*

6

204

174

636a

1870

204

224

144

305*

20*

23*

144

307a

Beth Steel ]

Big Thee tnds.....l
Black ft Decker..!

Block HR <

B ua Bell,._ ; 243* 243*

Boeing. 19* ; 204

Boise Cascade—.! 274 | 277a

Borden -1 334

Borg Warner ! 284

Braniff Inti >

Briggs Strain

Bristol-Myers

BP 1

Brockway GlasB. 1
Brown Porman B,

Brown Grp —■

Brown ft Sharp- '

Browng Ferris—. 333*
Brunswick— —.1 18

O.10

264

547 8

22 *

15*

564

537a

16

33*

284

0.14

264

55*

234

154

36li

353*

16

337a

177s

Bucyrus-Erie..._[
Burlington Ind . J
Burlington Nrthn

Bumdy — .

Burroughs

CBI Inds

CBS -

CPC Inti

cat

Campbell Red L;
Campbell Soup..
Campbell Tagg ..
Canal Randolph.

Can. Pacific

Carlisle Corp.....

Carnation

Carp Tech ........

15

23*

60

183*

353*

30*

43*

363*

423,

117*

364

234

27

2370

243,

32

364

154

23T B

SO 4

28*

367a

35

444

364

424

ns*

374

234

*74

227g

254

33*

363*

Carter Hawley _.

Caterpillar

Celanese Corp...

Centel.. _...

Centex

Central & Sw ......

Central Soya

Certain-teed

Cessna Aircraft.
Champ Home Bid

Champ Int ■

Champ Sp Plug..!

Charter Co I

Chase Man hatt'n 53

Chemical NY 324

Cheese Pond | 35**

Chicago Pneum.. 1 14? 8

Chrysler... { 64

Chubb I 433,

144

404

54

314

224

16

11 *

117s

18

24

13-4

6*

9*

144
! 41*
! 55
I 30Tb
25
164
11 *
117 8

I84

3

14*

8*

94

523*

324

36*

15

6*

44

Cigna I 424

Cincinnati Mil .... 234

Citicorp 26*

Cities Service 354

City Invest I 237a

Clark Equipment! 2i*
Cleve Cliffs Iron.l 233,

Clorox I 1370

Clueltt Peaby .... 163*

Coca Cola. r 33*

Colgate Palm \

Collins Aikman...i
Colt Inds I

173*

12i*

264

424

227«

274

35*

244

21*

24

13?a

163*

33*

177 8

12 *

264

Comp- Science...; 124
Cone Mills.; — 1 314

Conrae ■ »•

Cons. Edison — I 36*

Cons Foods

Cons Freight—..

Con. NatGas...-.
Conumer Power]

Cont Air Lines...

Conti. Corp

Conti. Group

Cont lllionls

Conti. Telep.....
Control Data

344

384

484

173*

44

2678

28*

283*

*6

28

12 *_

324

254

37*

343,

394

484

177s

4*

27

26-4

283*

137 b

283,

35*
124

24
48*
204
315*

25
29
25*
21 *
37*
443,

74
29 U
633*
30*
35*
293*

Delta Air j 32* I 323*

Denny'S.. I 244 j 24*

Cooper Inds... ....

Coors Adolph

Copperweld

Corning Glass ..J
Corroon Black....
Cox Broancasfg

Crane 1

Crocker Nat

Crown Cork

Crown Zell

Cummins Eng
Curtiss- Wright...!

Damon

Dana

Dart & Kraft I

Data Gen I

Dayton-Hudson ..[
Deere 1

34*
12 *
24
48*
20
31 T 8
254
29
254
21
374
44*
73,
£9
534

307 8

36

284

24*

124

40*

203,

94

Dentsply Inti

Detroit Edison—

Diamond Inti

Diamond Shank-

DiGlorglo 1

Digital Equip j 764

Dillingham IDs

Dillon - I

Disney (Walt)

Dome Mines

Donnelly IRR).

Dover Carp

Dow Chemical -
Dow Jones——

Dresser

Dr. Pepper

Duke Power

Dun & Brad ...... -

Du Pont. -

EG A G„

2218

66

10 *

44

254

23

4S4

22

123,

22

683*

35*

173,

244

12 *

40*

21 *

94

763*
11 *
224
56
104
444
24 7 a
23*
453*
237 S
12T 8
23 4
694
36
177b

Easco

Eastern Airlines.

Eastern Gas & F.I

Eastman Kodak..

Eaton

Echlin Mfg

Ecfcherd Jack.....
Electronic Data.

Elect Memories. 1

El Paso -I

Emerson Elect...:
Emery Air Fgt-.|
Em hart

137a

64

20ia

733,

304

137a

lB?a

274

S3,

25

443,

94

35

Engelhard Corp-! £23,

19

6*

207 a

737b

30

14

lBTg

27*

37b

233,

45*

9

357,

22*

Ensereh-

Eg mark...— -

Ethyl

Evans Prod

Ex Cell O

Exxon .................

FMC - -

Faberge....... J 20

Fodders.—

Federal Co

Federal-Mogul

Fed. Nat Mort-.

Fed. Paper Brd..

Fed. Resources.

Fed. Dap. Stores

Fieldcrest Ml

Firestone—.

1st Bank System
1st Charter Fin.

213*

46

1ST,

11

24

28*

264

37#

227g

214

10 *

233,

JP

is

323,

107,

22*

464

204

107b

243,

29

26*

19*

4

227 B

214

1070

24

14

457 8

243,

124

32*

11 *

1st Chicago

1st City Bank Taxi
1st Interstate.

1st Mississippi

1st Nat Boston...

1st Penn

Fisons. -

Fleetwood Ent—i
Flexi-van... —

Florida Pwr A U.

Ford Motor—.:—.;
Foremost Mck....

Foster Wheeler...[
Freeport McM — : 18*

Fruehauf _ J iai,

GAF - : 13*

GATX-. — } 27* j

19*

27*

28*

104

35

370

5*

137s

174

33*

23*

33

134

19*

284

28*

11

254

37a

57*

13*

17*

334

34

33

13*

18*

183,

12*

274

Gannet..—

Gelco..—

Gen Am invest -

Gen Cinema

Gen Dynamics ...

Gen Electric

Gen Foods

Gen Instruments 37

Gen Mills

Gen Motors

Gen Pub Utilities]

Gen Signal

Gen Telep Elec-

Gen Tire —

Genesco —

34% 347b

30* 21

16 16
43* i «**
25* 36*

624

361,

40*

43*'

5

37

304

20*

4*

62*

364

37*

40*

44

5

37

304

20

4*

36*

157r

Genuine Parts....!

Georgia Pac. J

Geosource ] 48*

Gerbes Prod I 30*

Getty OH : 55*.

Glddens Lewis.... 1 1 174

Gillette j S3 7g

Global Marine 13*

Goodrich (BP-...I 21
Goodyear Tire— I 23*

Gould I 26

Grace j 39

Grainger (W,W)...[ 40

36T S

157a

49*

30

54*

17S«

346g

143,

21

23*

264

404

40

Stock

Mav

17

May

14

Ct. Atl. Pae. Tea.
Gt Basins Pet....
GtNthn.Nekoosa
GtWestFlnanel.

Greyhound...,

Grumman—

Gulf ft Weston....

.6 -

2*
34*
127,
13 70
27
147 e

64

2*

35

127a

14
2670

15

Gulf Oil * 33

Hall (FBI .—.J 28*

Halliburton...;

Hammermlll Pprl
Hcndfeman
Hanna Mining
Harcourt Brace-

Harris Bancp |

Harris Corp ......

Harsco !

Heeis Mining

Heinz (HJ> I

Hails rind.. ......„j

-Hercules- —I

Hershey...- [ 42*

Heublein.. 40

Hewlett Pkd 42*

Hilton Hotels 37*

Hitachi 29

557a

257 8

13*

32*

15*

28*

28 *

18

870

314

183,

204

534

294

56*

257,

15*

324

15*

29

294

18

9

31*

184

204

424

404

434

37*

29

Holiday Inns. j 274

Holly Sugar 47

HomestaJre. ! 24

Honeywell ! 72*

Hoover. — .

Hoover IJnl -

Hormel Geo.V-.
Hospital Corp—
Household ind—

Houston Inds

Hudson Bay Mng.

Hughes Tool 1 274

Humana- 26*

IQS,

174

214

314

17*

19

134

28*

45*

34*

737 b

107b

184

21 *

307 S

I84

19

13*

28

25

Husky Oit- | S3,

Hutton lEF) 1 287,

1C inds 30)0

IU Int— 12*

Ideal Basic Ind... 14 ■«

Ideal Toy- — 13*

ICIADR— : 6

Imp Corp AmerJ

INCO. j.

Ingersol Rand —

Inland Steel

Intel

inter First Corp-

Intertake

'Inter North— I

IBM - - -I

74
104
49), j
2070
334

227a

28

26S,

623,

6*

29

3010

12*

14*

13*

6

7*

10*

60

214

344

23*

273,

26*

633,

IMl. Flavour*

inti. Harvester—
tntl.lneome Prop]

Inti. Paper.

Int. Rectifier.

JntJ.Tel ft Tel

Irving Bank.

James 1 FS).

Jeffn-Pllot

Jewel Cos..

Jim Walter.

J oh nson- Contr ._!
Johnson ft Jns—
Johnthan Logan.

Joy Mnf

K. Mart _

Kaiser Alum,—

204

44

85,

36*

124

254

38*

21*

27*

344

18*

22*

40*

154

26

184

12*

Kaiser Steel j 2678

20 >a
4*
es,
36*
127 S
254
304
216,
274
344
19
22*
403*
15*
26
184
134
27

Kaneb Services „|

Kaufman Brd

Kay Corp— j

Kellogg

17*

9

94

244

KeAnametal 1 281,

Kerr-McGee

IGdde... J

Kimberley -Clark.
Klng's Sept St....
Knight Rdr. Nws.|
Koppers.— —

Kroehler

fST:--:;:::;::

Lanier Bus. Prod

Leas-Slegler

Laare way Trans.

2910

24*

634

84

524

15

7

31*
13*
16*
25 4

284

1B4

94

9*

243,

284

30*

243*

63*

34

324

16

7

314

137 S

16*

254

284

Lenox

Levi Strauss...

Levttz Furntr

Libby Owens Fd.|

Lily tEin.

Lincoln Nat-

Litton Inds—

39*

It*

234

5870

434

445a

Lockheed. ! 49

Loews—.

Lone Star inds—

Longs Drug Sirs.
Louisiana Land._
Loulsiana Pac—
Lowenstein ........

Lubrizol

Lucky Strs. 1

MIA Com. Inc 1 214

MCA - 634

MacMillan 1

914

204

29*

29*

19

265*

21*

144

154

394

254

264

23*

5870

434

443,

487 S

904

20*

294

304

19*

26*

214

24*

224

54*

154

Mac.

Mfcrs Hanover....
Manilla Corp. ....

Map co 304

Marine Mid 1 224

Marriott...

Marsh McLenn...
Marshall Retd-

Martin Mtta 1 29*

Maryland Cup— ; 39

Masco 1

Massey Fergn. ...

Mass Multl.Corp.!

Mattel ;

May Dept. Strs....

334 1 334
30 1 304

11* [ 124
31
224

39 7 G I 404
334 { 334
294 294

29*
I IS 4
. 334

I a*
134

194
! 294

333,

2*

28*

19*

294

Maytag 1 274

Uarntlaah > O"-

9*

25*

McCulloch
McDermott URi-

McDonaJds

McDonnell Doug
McGraw Edison-

McGraw-Hill

McLean Trukg ...'

Mead i

Media Genl."".../ 39*

Medtronic 434

Mellon Natl 33*

Mehrllle ; 484

Mercantile su. ..; 62*

Merck i 74*

Meredith : 604

Merrill Lynch ...1 284

274

970
. . 354

654 I 657?
34* ; 34*
304 ! 304
537a . 544
13* ! 13*
18

184

394

43lj

35*

464

627,

75

604

29

Stock

■"N

MGM

Metromedia

Milton Bradley ...
Minnesota MM ..

May

24

67 8 7

204 2034

195s

534

Missouri Pac ; 634

244

8*

11

164

Mobil - 1

Modern Merchg

Mohasco —

Monarch M/T —

Monsanto- I 66*

Moore MaCmrk.J 28 4

Morgan (JP) [ 83*

Motorolo....- > 634

Munsingwear ....J 12*

Murphy (GO | U*

Murhy OH .....; 225*

Nabisco Srands-i 334
Halco Ghem- —

474

19*

55*

55

24*

9

114

16*

674

237,

534

634

12*

12

23*

3$fg

47

Nat can —

Nat Detroit

Mat Dist. Chem,„
Nat Gypsum......

Nat Medioal Entj
Nat SemloductrJ
Nat. Service Indj
Nat Standard—
Nat Steel— -

Noto mas -

NCNB

18*

23*

224

204

147,

224

85

114

18*

187,

15*

18*

23*

22 U
19*
15*
224

254

1150

28*

164

13*

48*

2770

16*

404

NCR. J

New England El.

NY State E A G._

NY Times- -...!

NewmontMInlngl 341,
Nieg. Mohawk— 144

NICORInc. 284

Nielsen (AC) A. ... 49*
NL Industries— .1 25t,
NLT..... | 297,

494

28

16*

414

35

14*

28*

49*

2618

29*

Norfolk A Westn.|

47

Nth.Am.Coal ' 314

Nth. AmJPhillps.1 38*
Nthn. State PwrJ 27*
Northgate Exp...

Northrop j

N West Airlines—
NWestBancorp._

Nwest Inds -.1

Nwestn Mutual...
Nwest Steel W..„!

Norton 3S <s

Norton Simon„„.l 20
Oceidental Pet...!
Ocean Drill Exp_

Ogden

OgilvyAMrth |

Ohio Edison-.—.,

oim

Omark —

34
60*
284
207 3
66* .
9* I
18

20i«

214

247,

33

13*

204

144

Oneok. - 1 297,

484
314
384
27 T,
Jh
507,
26*

67*

•*

18

344

197,

204

22

24*

321*

157,

20),

14*

29*

Outboard Marine' 24* | 24*
Overseas Ship — , 16* ! 16*
OwensGomlng ..! 104 ,'*19*
Owens-Illinois— 26* . 274

PHH Group 81 4 21*

PPG inds I-, 33* 1 323,

Pafast Brewing .... 21* 214

Pae. Gas A Elect! 224 ! 22*
Pac. Lighting ; 25* | 234
Pac. Lumber | 19 , 19

Pae. Tel. A Tel. 194 | 194

Palm Beach

Pan. Am. Air

Pan. Hand Pipe..
Parker Drilling ..
Parker Hanfn. ...
Peabody Inti. —
Penn central—..
Penney (JCt

15*

27a

314

14

194

64

284

25*

Pennzoil I 38*

16

37,

23*

143,

194

64

287,

55*

38*

Peoples Energy.,1 84

PepsiCo — 37*

Perkin Elmer 204

Petrie Stores 1 234

Petrolane 1 164

Pfizer- !

Phelps Dodge I

Phila Elect... i

Phibro

Phmp Morris....—

Phillips Pet-

Pillbury-

Pioneer Corp

Pitney-Bowes..,-

Pittston

Planning Res'ahJ

Plessey — ,

Polaroid —

Potlatch J 25*

Prentice Hall ' 28*

Proctor Gamblelj 844

564

264

15

244

SOI,

31*

454

22*

29*

174

7*

75*

19*

84

284

20*

234

16*

B5*

*54

15

254

51*

32

453,

237,

29*

184

73,

76

197,

26

274

84*

Pub. 8erv. E A G.
Pub. S. Indiana...

Furex

Pu relator -

Quaker Oats...

Quanex

Questor

RCA

Raison Purina—
Ramada Inns.—
Rank Org. ADR..
Raytheon —
Reading Bates -

Redman Inds

Reeves Bros

Reichhoid Chem

21*

22*

30*

344

404

94

•134

21*

14

54

2*

354

16*

12*

67*

121 ,

214

224

30*

343,

40*

94

13*

204

14

6*

27a

35*

17*

13*

674

124

Republic Steel-
Rep of Texas —
Resch Cottrell—
Resort Ml A—

Revco (DSl

Revere Copper—

Revlon —

Rexnord :

187a

324

124

204

27*

10*

30*

11

Reynolds IRJ1—.I 484

Reynolds Mtls.

Rrte Aid —

Roadway Exps...
Robbins (AH) —
Rochester Gas...
Rockwell Inti — ]

Rohm A Haas

Rollins. —

20

31

36*

13*

18*

324

124

21*

277s

1070

303,

114'

494

SO*

304

363*

1370

144 144

313, i 32*
574 . 58
157 S I 1570

304

1030

11*

18*5

Roim -

Roper Corp.— |

Rowan

Royal Crown •

Royal Dutch ! 357,

Rubbermaid ] 42

Ryan Homes— I 144
Ryder System —1 294
SFN Companies- 193,
SPSTechnol.gfesj 134

Sabine Corp 36*

Safeco; _... 384

Safeway Stores.. 30

St Paul Cos 46

St. Regis Paper.J 254 i 26*
Sante Fe Inds. — ] 157, i I64

Saul Invest J 74

Saxon Indue 1*

Sobering Plough 29*

304
1070
11*
194
36*
1 42
j 144
29*
I 19*
I 1370
I 3 64
i 381s
1 30
464

74

1*

297 8

Stock

SCM

Scot* Paper

Season

Seagram—

Soane (GDI
Sears Roebuck...!

Shall Trans 1

Sherwin-Wms !

Signal

Slgnode-

May

17

Is

16*

16*

475fl

4a*

23*

23*

16*.

167a

25J,

26*

sa*

53* ■

31

31*

35*

357,

19*

20*

33*

34

34

34*

37*.

37*

3038

30*

24*

24*

18*

1B7 3

49

49*

84

121:

Simplicity Patt...'

Singer J

Skyline .._ | 14*

Smith inti ! 31*

Smith Kline Beck 1 684
Sonesta Inti 94

Sony; 16),

Southeast Banka! 164
Sth. Cat. Edison . 31Ts

Southern Co I 12*

Sthn. Nat Res—: 284
Sthn. N. Eng. Tel. 1 45

Sthri. Pacific I 33*

Sthn.- Railway—.; 894

Southlands - I 33

S.W. Bancs ha res 244

Sperry Corp ; 257,

Spring Wille, 1 274

Square D- | 25*

Squibb — 353*

Std.Brands Paint! 254

8*

123,

15

38*

68

9

16*

16*

324

W*

27

454

334

914

534

24*

264

274

26*

36

254

StdOll CUfomlaJ 354
Std Oil Indiana.. 444

Std Dll Ohio 37*

Stanley Wks. 15*

Stauffer Chem...| 23
Sterling Drug— 23 4

Stevens I 144

Stokely Van K . ..I 304

Storage Tech • 23*

Sun Co - I 35* .

Sun dstrand ........ J 35 4 1 35*

Superior Oil J 32* I .334

Super Val Strs— 17 * , l 77 *
Syntax.

TRW

Taft -

Tampax- 36

34*

441,

37T B

151,

234

244

15

31*

34

36 4

344 ! 35
51 ; si*

33)2 j 34 4

36*

Tandy I 28* I 28*

Teledyne =119 [117*

Tektronix - ' 63* 1 54!,

Tenneco 1 274 i 284

Tesora Pet

Texaco

Texas Comm. Bk
Texas Eastern ... j
Texas Gas Trn .,.1
Texas Instr'm'ts
Texas Oil AGas—l
Texas Utilities -.

Textron

Thermo Electro
Thomak Betts ... ( 504

Tidewater 1 26

Tiger lntf._ ! B7 (

Time Ino I 33

Times Mirror— ...I

21

304

34 '

47*

27

89*

3070

234

234

154

424

23.

31

35

48*

27

914

314

254

23*

16*

504

264

94

331,

424

Timken —

Tipperary-

Tonka. -

Total Pet 1

Trane

Tran sam erica ...

Transway

Tran, World—

Travellers....

Tricentrol

63*

9*

234

104

54*

91s

237,

104

32* > 29*

204

224

21*

43*

7*

20 4
23
an,
444

7*

Tri Continental...)
Triton Energy...

Tyler

UAL-

UMC Inds.

Unilever N.V.

Union Camp. 1

Union Carbide—]

184

15

161,

194

84

62

474

464

18*

144

16

1 I?.

47

Union Oil Cal 1

Unign Pacific. —

Uni royal —

Untd. Brands —

Unt Energy Res.

US Fidelity G

US Gypsum

US Home....:

US Inds

US Shoe

US steel

US Surgical-

US Tobacco...

US Trust—.- ,

Utd.Technolgs... 39 t b
U td, TelecommsJ 19*

Upjohn — —

VF. -

Vaiian Assoc*. —

35*

39

B*

11*

36

434

30*

13*

10*

30*

244

214

464

36*

46*

41

35

Vernitron —.......j 10*

36

404

87,

11*

as

S'

97s

3X7,

247,

214

464

36*

404

19t b

47*

404

363*

114

Virginia EP 1 13*

Vulcan Matrie....< 46
Walker 1H1 Res... I 133,
Wal-Mart Stores.! 494

Wamaco.. j 334

Warner Comma.. 33
Warner-Lambt-..: 24*
Washington Post 354
Waste Mangt 5a 4

WelsMkta. 414

Weil6 Fargo— 234
W.ftalnt Peppi— 233,
Western Airlines; 31,

Westn. Nth.Amrij 12*.! 13*
Westlnghouse—i *54 | 253*

Westvace ; 19* ) 20*

Weyerhaeuser,... | 274

13*

46*

14

494

334

527,

247 S

34*

32*

413,

237 B

23*

37 8

273*

Wheelobratr F...{ 334
Wheeling Pitts .. ’ 164

Whirlpool 28*

White Con so ltd.. 1 264

Whittaker I 25*

Wickes I 3

Williams Co ; 19*

Winn-Dixie Str—[ 364

Winnebago ) 64

Wiso Elec Power | 314

Woolworth- 19*

Wrlgley _• 314

Wyly - 8*

Xerox - ; 354

Yellow FrtSys... | 134

Zapata. 19*

Zenith Radio 13*

33*

1610

29

28

264

s

19*

367,

63,

314

197,

314

8*

354

13*

204

133,

Indices

NEW YORK

-DOW JONES

May ; May ; May 1 May j

14

13 ', 12

May

11

May

10

1982

ice Cmpll't'n

I High | Low | High ; Low

I lit; I

Alndustr'ls: 845.32] S57.7S 8aS.n!6et77'8E5.S7| 860.92,' 8S2.S2

1*1)

H'maEnda.f SOSO 63.89 60.06 69.33: 69.921 60.06 60.20
• 1 1 I I Ilf lb)

Transport.. 3*5.45! 3M^4!350.22 (350.70 352.M 349.65 j 268.46
1 ■ : 1 ; ! *7/ii

Utilities..—' 114.02] 115.57 116.22' 116.75: 116.91 11638 | 116.95
III I <7/51

Trading vol ‘ i I ! r

000- 1 J 45.«n| 4S^OO ! 58 l 230|59 > 21O'54.E8Oj 46,300 j —

4 Day's high 657.21 low 842.94

1051.70 *1.22
(11)1175), C2I7/S2)

~ 1 “

795.47
(8/3)

65.67
112/2) I
214.30 i 447.38 [ 12.52
cars, ‘(18/4/81) . (Brr/52)
105.81 I 185J2 ; 18.6
(13/1) 1(20/4,89) (28.4/42)

Ind. dlv. yield %

i May 14

May 7

1 /tom so

, Year ago (Approx

! 6.62

BAS

6.58

i 5.81

STANDARD AND POORS

|*W !">7i

May 1 May I May 1 May

1 1982

13 | 12 |

11 1 10

1 High | Low / High ■ Low j

indust'ls 130 JIB- 13136 151.76; 132.74 151.74) 157 Jfl I 118.41 ' 160.98 I 5.62

J , 1 • ! < <4/11 i IB/S) (28/1 IflK (50/8/321

Composite 118.7)! liajll. 118.221 119.17] 119.421 110.191 122.74 ! 107 I 14032 , 4.407
1 ; • 1 ■ ! M/ll I iB.5» (£8/1 1 ,'80i f l,E,S2i

Ind- div. yield 1

May 12 J May 5

5.52

5.61

Ind. P/E Ratio

8.02

7.91

April 28 I Year ago (approx)

5.64

4.70

7.88

9.91

Long Gov. Bond yield

12.77 t 12.91

12.93

13.72

NY.5.E. Alt COMMON

1962

Rhea and Falls

,May 17 May 14 May 13

May , May i May , May

17 >14 15 ' 12 High

Low

67.3668.11 68.2068.69, 71,20
. . ; <4/11

162.52
I (12/31

Issues Traded .1,868

Rise* : 346

Falls 1 1,088

Unchanged _i 434

Hew Highs. .[ 21

New Lows 29

1,885
, 651
' 726
) 488

27

16

'1,869
571
j 853
! 445

: 31

• 18

MONTREAL

M i ¥

May

14

May

13

May

19

19BZ

High

Low

IndU&trials , 28S.2& 2SB.1S; 239.24' 282^7. 532.79 (4.1 1 I 270.48 (16 J.
Combined : 267.32' 270 J2j 271.63, 274.41; SISJM <4.1> - 252.03 i15j)

TORONTO Composite' 1545.21 lS64j|l5TIU ! 1535^1 ltefi.5 (4.1/ ! 1526J (5 rt)

NEW YORK ACTIVE STOCKS

Change

Chanoa

Monday

Stocks Closing

on

Stocks Closing

m

traded

price

day

traded

Middle S. Util.

1.591.400

13V

-- *

IBM 599.900

62*

- \

.. 967.300

16*

- *

Sears Roebuck . 438.300

19*«

- *

Amer, Airlines..

. 93J.4CO

17S

+ *

Com with. Edison 479.400

22*

- 4

Braniff

.. 319.300

0 10

-0.04

Exxon 460,400

28\

“ *

Houston Inds.

. Si 2. 200

13

—

Caesars World . 457.000

3*

May

18

May

14

High

1982

i

Low

AUSTRALIA
All ord. ilii/BT,

Metal ft Minis. (1:1/88)

1 BIS. 5
< 876.7

619.1 1 613.5

580J ; 379.8

628.4

£04.6

696 A <4/11
426.7 (5.1)

466.8 (Iflil)
32 22 (2/4/

AUSTRIA

Credit Aktlen <2/ 1/82)

62.24, 62.63' .62.66 52.47. 66.96 (4/1)

62.18 (18/4/

BELGIUM

Belgian SE (01.'12/83)

93JS 94.32;

DENMARK

Copenhagen SE 1 1/1/76)

04.61'

J-

04.84

117.85: 118.78,' 110.29: 119.42

FRANCE )

CAS General (61/12/81) 1 109.4 ; 110.2
Ind Tendance (31/12/81)! 122.0 1 126.0

110.60; 111.4
123.60! 124.4

102.43 (S/4)

128.22 (26/2)

111.6(126)
124.8 (12/6)

80.42 (2011)

112.60 (9/6)

95J (4/1)
97 7 ,4/1)

GERMANY 1

FAZ-Aktien (51/I2 I 58) 1 229.70 23I.4Q 251.Q1 230.00'

GommerzbantoDeclBSSj; 700.6 • 7053 : 704.20; 701.4 ;

238.46 (6/41
729.8 (6/4)

216.36 (16/1)
666.7 (18(1)

HOLLAND

ANP-CBS General (1970) ;
ANP^BS Indust (1870/ '

94.1

74.4

84.5

74.8

84.2 ;
76.9 !

84.0

733

85.0 (10/5)
74.8 no/si

84.0 /am
63.2 (4/1/

HONG KONG I 1

Hang Seng Bank (31.7/64 :1564.05!W6 1.50] «6733i 1363.851

1445.62(12/1) I 1129.83 (3/51

ITALY 1 i '

BancaComrn ltal.(1972) ; 16533: 184.15] 18531 r 182.59 1 212.88 (I8161

181.45 (11(1)

JAPAN**

Dow Average (16/*dS)
Tokyo New SE (*.'1:60/

I7567.D8 : 76 19,3975753 T7E0S.2 1
, 66038i 55333) 568.73- 562,29;

7928.55(27/1) [688935(17/6)
66539 (27/1/ j 620.70(17/8/

NORWAY
Oslo SE (1/1/72;

' 134.231

(c) i ia.94 12S3B’ lao.M (26/11 j 169.12(1/4)

SINGAPORE
Straits Time* (is»5>

770,89. 773.2V 701 .82. 783.71 810.78 cS.'lt 007.49 (S3f

SOUTH AFRICA
Geld 1 1558)
Industrial (1958)

(ui

IU)

IU)

(U)

! 416.2 i *183
I 688.1 I 5303

669.8 15/1)
711.7 18(1)

410,6 (11. '5)
6653 (29/3i

SPAIN

Madrid SE (SO K.-Bll

3831] (Cl : 101.58] 101.35! 107.45 (B«) I 08.17 (5/11

SWEDEN
Jacobson ft P.

fl/l/SJ) . 597.76] 684J7 1 588.75- 58S30. 55632 122/1) '• 503.32 (28/4)

SWITZERLAND

Swiss BankCpn.(61/12, 68V 258.9

2603 2603 2583 2SS.1 (llill 2423 1 1 1/9/

WORLD

Capital Inti. (1/1/70)

- ! 1363 11*9.1 158.8 ‘ 1473(«.'l) | .129.1(17/8)

f**) Saturday May 15; Japan Dow (c) TSE (c)

Base values Ct all -ndrecc arc 100 except Australia Aid Ordinary and Metals—
500. NYSc All Common— 50; Standard ar.d Poors— 10; jnd To rents — 1.000. ;na
last named bsasd 0*1 197S. t Excluding bond:. 1 400 Industries. f 400
industrials plus 40 Utilities, 40 Financial* and 20 Terre ports. 0 Closed
u Unavailabel.

MONDAY'S SHARP fall on Wall
Street was taken a stage further

10 fairly active early dealings
yesterday.

Analysis said the weakness so
far this- week resulted from
worries over continuing high
TJ.S. interest rates, as well as
a technical correction afler the
market’s recent advance.

The Dow Jones Industrial
Average, following a 12.4 set-
back tiie previous day, was 3.52
lower at 841.80 by I pm. The
NYSE All Common lodex
receded 35 cents more to $67.01
aod declines led gains by more
than a two-to-one ratio. Turn-
over came to 35.19m shares,
against Monday’s 1 pm figure -of
33.35m.

Chase Manhattan was off $2 to
S50 on volume of over 191.000
shares. The company said a
securities company, identified by
banking sources as Drysda le
Securities, was unable to pay
SlGOm in interest due on
Monday.

Among other declining issues.
Bankers Trust lest 11 to SS01.
NL Industries \\ to $24}. El Paso

11 to S213. Union Pacific $1 to
$38. Trane It to $311. Texas
Instruments SI to SSSg and
Genuine Parts 13 .to $35!.

Actively - traded Hewlett-
Packard was up $1 to $441 on
volume of over 200,000 shares.
The company reported higher
second-quarter earnings and
orders.

THE AMERICAN SE Market
Value Index slipped 1.39 more to
274.31 at I pm. Volume 2.66m
shares (2.67m).

100 on trading of &22m shares
in Toronto. -

The Oil and Gas index was
off 3S.0 at 2/700.8 as Francana
Oil and Gas fell to CSllj,
United. Canso f to CS61 and
Sceptre Resources i to C55}.

Golds fell 40.2 to 2.089.8,
Transportation .17.0 to 1.90LG
and Metals and Minerals 19.1 to
1,369.9.

Sumitomo Metal Y7 to. Y172 and They said that some disaippolnt-

Mitsnl Shipbuilding Y3 to YI79.

Germany

Tokyo

Canada

Markets continued their down-
ward trend yesterday morning
as worries about the direction
of interest rates spilled over
from Wail Street. The Toronto
Composite index was off 9.4 at
1,533.8 at mid-session as 10 of
the 14 major indices were
lower. Falls led rises by 191 to

Closing prices for North
America were not available
for this edition.

Monday's - rally, which was
centred on Blue .Chips, gave way
to a broad decline in share prices
yesterday in moderate activity.
Depressing sentiment was the
sharp overnight Wall Street set-
back aod a- weakening yen
against the U.S. dollar, both re-
flecting worries that U.S. interest
rates may remain high for at
least the near-term.

The Nikkei-Dow Jones Aver-
age, after the previous day's
rise of 4a58, receded 52.33 to
7,567.06. The Tokyo SE index,
up 2.60 on Monday, lost 2,95 at
560.3S. Declining issues out-
numbered rises by 418 to 180 on
the First Market after volume of
260m shares, compared with
Monday’s light 210m.

In addition, concern that the
Falkland Islands military con-
flict may soon be greatly
escalated was said to be making
market participants . wary. How-
ever. this generated demand for
speculative Mining issues, which
scored good rises. Mitsui /Mining
and Smelting moved ahead Y13
to Y230 and Sumitomo MelaJ
Mining Y40 to Y875.

Also meeting strong buying
were some Pharmaceutical
issues, which climbed sharply in
anticipation of good earnings
results due to strong sales of
anti-cancer and other new-genera-
tioa drugs. Tana be SelyaJcu rose
Y57 to YS67 and Bangn Pharma-
ceutical Y30 to Y585.

Blue Chips led die general
retreat, with Hitachi fatting Y12
to Y687, Nippon Electric Y16 to
S823, Sony Y80 to Y3B30. Toyota
Motor Y10 to YlfllO, Honda
Motor Y16 to Y764. Olympus Y25
to Y905, Canon Y16 to Y857,

Most shares lost ground as the
sharply lower overaiigit ■ Wall
Street and a weak Domestic Bond
market heightened" the reluct*
ance of investors to commit
fresh (funds in a week shortened
by the • .impending • holiday
tomorrow.

Foreign buying 'putied' delected
shares off their lows, however.
V-lkswagen ended - only ■ 10
pfennigs off at DM. 152, after
DM 15L .

Dresdner Bank dipped DM 2.40
to DM 152.60. although Deutsche
Bank, on reporting : a 20 per cent
rise in interim operating earn-
inss, lost just 6Q pfennigs at
DM 284.

In Electricals. SEL, ahead of
results, fell sharnly by DM 11.50
to DM 2 38 and .Siemens receded
DM 2.20 to DM 219.30.

meat- over the ' tenacity of U.S.
interest rates to hold, their
currently high levels has hurt
the exarkef - after-several weeks
during which a decline in rates
had 'been anticipated. The loss of
-investor enthusiasm . has also
resulted. in. a drying up of take-
over, nunoura^ which- has, con-
tributed to the fati-off in turn-
over.

Hong Konp markets, broker's
added, are likely to take their
cue from movements - on Wall
Street in the near-term. n

Australia

Paris

French and foreign stock
prices were marked down across .
a broad front in fairly active
trading as operators began
squaring their accounts ahead of
the new monthly trading
Account, which begins . . on
Friday.

The technical downturn was
aggravated by the weakness of
Wall 1 Street overnight on con-
cern that U.S. interest rates
might not come down as quickly
-as had been thought. The rapid
rise in the U.S. dollar had also
diverted some capital away from
the Stock Exchange, market
analysts said.

Hong Kong

in. £bare
extended
business

Th recent Tetreat
prices was sharply
yesterday, although -
remained moderate.

The Rang Seng Index lost
27.45 at 1,334.05, while turnover
on tbe four exchanges totalled
HKS238.34m, against Monday's
HKS246.91m. •

Brokers warned that toe
market appears ready to settle
some more before stabilising.

Markets were carter-inclined m
further thin trading, .sentiment
dampened by the -overnight falls
on London and Wall Street
markets. The All Ordinaries
index lost 2.6 to 516.5.

Uncertain Gold prices com-
pounded the market's problems.
Poseidon shed 10 cents to AS1.75
and Central Norseman Gold 5
cents to A £4-75.

Investors exercised caution
among minor Oil stocks as they
waited for more information
about the Kibee No. 1 explora-
tion well in Queensland. Of the
partners. Pan continental

Petroleum lost a cent to 47 cents,
Sydney 011 10 cents to 90 cents
and Petroleum Securities 20
cents to AS4.80, but Bligh (HI
gained 7 cents tD AS1.32.

ANZ Banking dipped 30 cents
to- AS4.00 for a lwo-day loss of
55 cents on the disappointing
half-year results.

Thomas Nationwide Transport
was unchanged at AS2.05 after
nine-months' results. Although
the company earned as much In
the tiirec quarters to March as it
did in the whole of the last
financial year, third-quarter
growth was fiat.

Johannesburg

The - market closed easier
across the board after mo derate
trading, with only occasional
small gains against the trend.- -
However, declines in the
Golds sector were modest and
ranged only to 100 cents, as in
Bandfonteln, R56.

CANADA

Stock

AMCA Inti

Abltlbl

Agnlco Eagle

Alcan AJumln ...

Algoma 8t6el

Asbestos

Bk. Montrsal ......

Bk.Nava Scotia...
Basic Rosouroosl

May

17

17*

16

eih

23*

31*

12*

19*

20*

3.50

May

24

171*

16

7*

24

*11,

12

197,

211/t

3.30

Bell Canada
Bow Valley...
BP Canada ...

Brascan A

Brlnco

B.C.Forest ...

OIL tne.

Cadillac Falnrie 1
Cam Ho Mines
Can Cement ,

i

20
IS*
30
163,
4.05
9*
22*
7*
6*
8* i

20*

16J,

30*

i 7 U

• 7*
6*
8*

Can NW Energy ~|

Can Packers

Can Trusco... j

Can Imp Bank ...

Can Pacific

Can P. Ent

Can Tire I

23

29*

23

21

281,

14*

36

23

29*

21*

28*

143,

36

Chieftain J 19

Gominco J 40*

Cone Bathst A.....I 14*

Cont Bk Canada.;

Coeeka Res

Costa|n.- „,.|

Daon Do val.

Denleon Mines....

Dome Minee. —

Dome Petroleum!

6*

5*

6

2.90

20*

13

8*

19*

417,

15

6*

i"

2.99

32*

13*

8*

Dom Foundries Aj

Dom Stores.

Domtar J

Falcon Nickel

Genstar !

Gt. West Life. i

Gulf Canada j

Gu Hat ream Res..
Hawk Sid. Can....
Holllnger Argus .1

33*

157,

18*

49*

121 ,

210

15*

2.80

9

27

S3*

157,

18*

49

12*

210

,r*

Hudson Bay Mng
Hudson's Bay. —

Husky 0)1

Masco j

Imp Oil .A .....

Inca.. _.J

Indal

Inter, pipe

16*

21*

7*8

40*

So*

12*

10

17*

16*

22 *

7

40

23*

1270

10

17

Mac Bloedel. \ 20

Mar ks ft Spence ri 11*

Massey Ferg SM

McIntyre Mines^ 30
Merland Explore 6.00

Mitel Corp I IS*

Moore Corp.. 37*

Nat. Sea Prods /0 7*
Noranda Mines..! 15

I 20
I 11*
5.10
303,
6 BO
20*
37*

' 2‘*
I 15*

Nthn. Telecom...! 54*

OokwoodPet i 10*,

Pacific Copper...! 1JSO
Pen Can Petrol .. 66*

Patino 18

Placer Dev [ 12*

Power Corp j 10*

Quebec Strgn„...[ 2.45

54*

10*

1.70

653,

18

12*

10*

2.50

Ranger OH 7*

Reed stenhs A ... 117,

Rio Algom 54*

Royal Bank ; 20*

Royal Trustee A.. 13 *

Sceptre Res.. ! 5*

Seagram f 65*

Shell Lan Oil 167,

Steel of Con A....I

20

7*

11*

34*

20*

15*

6*

66*

17*

201 ,

Texaco Canada..!
Thonwon NewsAI
Torcnt oDom Bk.
TraneCan Pipe . !
Trans Mntn. Oil Al
Utd. Sisco Mines!
WalkeriHlRes..
Westcoat Trans..
Weston /Geo/—.;

25*

21

25

20

7*

3.50

163,

123,

3312

26*

21

26*

20*

7*

3.50

17*

12*

54*

AUSTRIA

•

■' May 18

Price

%

215

1 ^

181

E+l

Sempcrlt..

KezJ

151

200 |

+ 07

4-2

-I

belgium/uuxembourg

May 18

Price

Frs.

ARBED l,280j

Banff Int A Lux... 4,100

Bekaort B ...; | 2,010

CimentCBR / 1,490

Cockerlll 1741 _

EBES ! 1,800'

EJectrobe! i 4,1451 -45

Fabr/queNat. 2,400 -70

+ or

—24

-50

+30

—25

-2

G.B. Ifino...

GBLiBrtixlj .„ .

Gevaert

Hoboken

Intercom

Kredletbank

Pan Nldgs |

2,275 -B
1,3D4| —26
l,740i "

3,245
1.488
4,700
6,820

-60

-105

—52

BELGIUM (continued)

HOLLAND

May 18

Prise

Frs.

Petrofina 4,800j

Royale Beige

Soc. Gen. Banq..'

Son Gen Beige..

Scflna. '

Solvay

Tracton Beet. .... .

UCB. 2,140

VlellleMont

1.160

3,298

1,910

+ ot

May 16

+ or

—15

5,050 -60
2,795

+ 10
+ 10
-55

2,8251 —40

+40

2,070| —15

DENMARK

May IB

Prico

X

+ er

Andelebanken....! 113^1
Baltics Skand ....[ 349.41
OopHandalsbankl 126
D. Sukkerfab — ; 387 J,

Oanske Bank ! 126

East Asiatic. ! 99.6

Forende Berygg.] 595
Forenede Damp.l 395

GNT Hldg 1 269

Jyske Bank™.,.,/' 176

Nord Kabel 134

Novo Ind 1 1,662

Papirfabrikker ~j 91.0
Privatbnnken _... 134.6
Provinsbanken../ 115

Smldth (FI) 199.0,

S. Be rend sen : 519.4]

Superfos 94.0

-2.6

-3.4

+0.2
—5
— 7
-1

-1
+ 13
—0.4
-0.4

-14.4

—0.6

-5.4

ACF Holding

Ahold.

AKZO

ABN

AMEV !

AMRO -...i

Bredera Cert

BostaUls Western
Buhrmann-Tet

iCalandHldgs

I Elsevier NDU

Ennla a j

Euro Comm Tst-.i
Gist. Brocades^.,

Helneken

Hoogovans
Hunter Douglas.,

Int Muller..

KLM— :

Naarden

Nat Ned cert

Ned Cred Bank...
Nad MM BanlL..

Ned Lloyd.

OceGrinten J

] Ommeran (Van).^

Pakhoad... -

PhIU pa

Rijn-Sctielda

ftobeco. —

Rodamco.

Rolinco.~

Rorento J

Royal Dutch

J Slavenburg's I

Tokyo Pac Ho ..„

Unilever...

viking Res '

Vmf Stork

] VNU

West Utr Bank

85.5

82.9

27.9
294.5

93.5

54.5
201

54.31

47.4

35.6|

158

120

75.7|

74a;

60,

22 J]

101.7

2Sj!

118

-2
+ 0.1
-0.9
+5.5
+ 1.6
+0.7
- 0.6
+ 0.8
+0^
—1.4
—3.5
+0.5

+ 0.1

-0.9

15® _oi

+ 0.1

+ 0.2

-0J
. +0^
35.6; +0.2
143 - + 1.5

130.7 — OJS
114 +0^

27 1+0.2

40 ^ -oa

arlS)

ana +0.7

122 a +oa

209a! +0.8

isoa +0.7
93a -oa

940^ -1

222.61 +oa

158 —1.3

181 -3.1

54 +0.5

57-& -1.2

ra.a -oa

PRANCE

May 18

Price

+ or

Fra.

Emp runt 4& 197

1.863

—39

Emprunt 7S1978

. 8,591

+25

CNE 5 %.

3.04C

+3

. 497

1 -4-

. .128

AuPrlntempa...

172.E

I -1

BIC

.1533

1 —1

Bouyguea

696

1 +8

BSN Gervals..

1.50C

—35

Carrefour..

1.680

-24

Club Medltor.....

617

f -U

CFAO

562

1 —3

CSF( Thomson)..

171

I +3

1.180

-3a

340

—2

120

Creusot Loire

88.5

—l

CFP

136

+ ia

DNEL

42.7

— ia

Dumez

[1,035

-15

Gen.- Occidental

418

—3

Imetal

» 66.6

+0.1

272.6

—2

963

—6

Leg rand

1.650

+2

Machines Bull ...

28J

-0.5

Matra

1.375

-5

768

-15

702

63.5

— ll8

588

-4

Perrier

175.3

—1.7

Peugeot-s A.

n ia

-1.9

PoclaJn

137

—1

Radiotech.........

322

—3.6

Roussel-UoJaf.....

1,065

307.8|

— 2.2

Skis Rossignol ...

590

—3

Telemsoh Elect.

820

+3

Valeo..

229

—2

GERMANY

May 18

Price

+ or

Dm.

AEG-TelOf.

39

+oa

Allianz Vers.

470

-2

BASF

127

+ 1.7

BAYER „

121.8

-0.6

Boyer-Hypo

212

—2

Bayar-Vereln

276.5

-3a

BHF-Bank |

208

-9.5

BMW

204a

-1.8

188.7

-1.3

144.1

— 1.S

49.6

-1

E3aa>M

2V8

—2.1

Degussa.

215.5

+0.8

134

-3

D'sche BabcOOlLj

199 |

-l

984

-0.6

iy J

—0.3

.52.582

-2.4

GHH J

184 1

-5

Hapag Uoyd.. — J

64 |

ITALY

May 18

j Price > +or
. Ure ( —

+50

AssIcurGen 157,750

Banea Com’le ..... 34.000

Bastogl Fin 15s

Centra/e 4,350

CredRoVareelno- 7,799

Flat- 1,739

FlneJder. 36.5 1

Invest ] 2,590

Itolcementi .34,000

italsider l20g

Montedison -119.5 :

Olivetti '2^00

Pirelli Co 1 3,500- +119

Pirelli Spa 1,390 +18

Bnia Viscose I 633

TOTO Attic 14,950 +90

do. Pref '12.290 +100

+ 1
•*25
+93
+27
+ 0.8
-10
—510

+2.5

+20

Bergen* Baks. .... 110 I

Borregaard- [ 115

Credltbank. ; 135 1

Elkem.. I 5l.5[

Kosmos 1 340 1

Norsk Hydro ! 516

Storebrand .1 223

— 1

SWEDEN

May 18

Price ! -J- or
Kroner —

AGA-... |

AJfa-Lavai

ASEA r

Astra

Atlas Copco

Bolide n

BOO

214

168

391

110

385

+ 1
+ 2
*2
+ 6
+ 1

Cellulose „...j 219

Electrolux K ~- | 95

Erlosson I 205

EsseltefFree) ! 130

Fagerata ....,...,..,1 127

Portia (Free! 1 144

Mo ooh Dom ...... 113

Saab-Skanle 1 133

SandvlklFree)....| 184

Skandia. +60

3 tan Enskllda. ! 226

SKFB^ I 129

St Kopparberg ..' 270

Sven Handefsbn.i 112
Swedish Match _i 111
Volvo (Fr«e|.,.„...; 161

+2
+ 1.

+ 1

1 JAPAN {continued)

ANZ Group

AorowAust — .
Ampol Pet — ...]
Assoc. Pulp Pap

Audlmco |

Atut Cons. Ind..
Aust Guarant -
AuitDatlndi..
Aust. Paper — I

Bank NSW

Blue Metal ....

Bond Hldgs

Baral.

BTvIila Copper-. [
Brambles Inds. ..'J
Bridge Oil

bhp ;

Brunswick Oil

May 18

' Pries
I Yen

+ or

4.00

1.35

1.40
134
0.11
1.55

2.40
2.80
1.99
2.75
1.55
1.17
2.60

1.36
208
300
804
0.19

CRA 305

CSR

Cariton-KUtd...-.
Castfemelna Tys
Cluff Oil (AustJ...,

Do. Opts —

Cbckbam Cemt,

Coles (GJ.) ;!

Camalco

Costa l n —

Crusader Oil

Dunlop — ....

Elder -Smith GOIJ 30
Endeavour Res...

Gen. Pro. Trust..

— OO Kubota

+ 0.05 Kumgaa)

—002 Kyoto Ceramic ..

+ 0.02
+001
-001
—0.0a

— OJtt
+001
—0.05
+0.05

Lion

Maeda Cons

Makite...'.

Marudal.. ..

Marul —

Matsushita

M'biahi Bank —

M’btshl Corp .1

M'bishi Elect.....-.,

— OjalM'WihlRI East.. 1

+o.bh M hi,...

Mitsui Co- •

Mitsui Rl Est

1.12

306
206
305
0.67
0.38
IOD ?
200
200
1.60
500

UW

-0.05 1 NGK^ Insulator*-.

— 0J8. Nippon GaWti....J

Nippon Meat

Nippon Oil. ........

NlPPdn Shlripan..'
— 005 Nippon Steel j

-or.. si-.. I

^■° 21 Nleshln Hour......

NlsShin Steel.-...!
Nomura

<L25 \
109 1

105

I Cl Aust S. ft.63

Jennings — 106
Jimb JanelsOcFR 0.19

Jones (D) 1.58

IGa Ora Gold — 0*10-
Leonard OH-......1 0.16

Renown...-

Ricoh-

— O.pzi Sanyo Elect-

1 Sapporo

+ S-2Jlseklsui Prefab...;

MIM- - :..J 3J4 ‘ -QJK snaml

Meekxtharm Ms. 1 2.40 ] JlhJBiedo

Meridian 0(1 J. OOl .: - ‘ “'

Monarch Pet-...! 009 •) ...

Myer Emp [ 105 .[

Nat Bank.. I 2.75 I ...

News. I .200

Nicholas KiWl;.;.l 1.44 '

North Bkn Hill.... 107 [ -OOS1

Sony

Stanley..... -

S’tomo Marine _.|
Talhsl Dengyo...,
Taiisi Coro... .....
TiiihoPtarm-.::)
Takeda .....

Oekbrldge. 1.45 i — 0.D1 TDK....: 3,830

Otter Expel J 0.38 TeUIn

Pa neon I./ 1.7' . -^0.1 Telkoii

Teikoku oil.. I

330

434

-8

3.480

-10 "

385

-7

678

—10

746

290

+ 2- ■'

610

—3 ;• -

906

-12

1460

+ 16: -

560

+6 .

600

636

Zs-

294

+2 . -

460

-5.- ..

220

-3,. . •

319

-3 . .

665

-6' -

562

-2

,1,150

-20

695

—4

398

-1

982

+8

871 |

- 18

165 1

-3

219 ;

-1

4/WD

—20

625

-6] “

334

168

460

-id 1

275

-i-

905

-28 *

1060

.i..

1,460

758

639

i;

446

-ii

269

731

+1-:

802

-18

877

+ 18

3.850

-80

355

—5 •

228

r

540

+ 9 '

269

+ ii

605

*7

875

+ ll

3.B30

-80

233

—4 i .

930

-18

uUCi

Pioneer Co

Queen Marg't G- 008
Reckitt ft Coin-.! 1.85 ;

Santos j 5.48 ,

Sleigh (HCl... ;.'..-! 0JS5 _■
Southland M'rt’gJ 0.31-

1021

sparges Expel...
The*. Natwic/e-.i

Tooth — _ _

UMALCons.

Valient Consdt...
Waltons....

Wooda/de Petrol ]

Woolworths

Wormald lntL—

Tokyo EleotPwr.

+ UJ * Tokyo Sanyo i

jTofcyuCorp ..I

1 Toshiba

...... _ .... a e-ra* Q

Western Mlnlngll 3.72 j — OJG | YamMaW —— !.7 577 ! — 0.

i Yaeude Fire" .7.."*.; 236 -1 .
2 68 1 1 Yokogawa Bdga.'__ 520

SINGAPORE

HONG KONG

Mey 18

Price

HJC.9

+ or

Cheung Kong.—. 16a i —0.5

Hang Seng a

HK Electric.

6J0< —0.05

Hk Shanghl Kk...,' 22.5
HK Telephone....! 29a
Hutchison wp»._i 16.4
Jardlne Moth,....' 16.4
New World Dev..: 4.12

O'seas Trust Bfcj. 5.85

SHK Props : 7.15

Swire Pao A. \ 11.6

Wheel' k MardA.l 6.15
Wheel’ KMaritl’e! 5.1
World int. Hldgs.: 2.95

May 18

! Price
! ®

+ or

J 2.19

■J- 4.-00

-0.02

DBS

aas

— 0.B6

J 6.60

+QJI5

IliPl

n 3.1

1 II r4 |F*»; Uff-Ill* PP

j aa2

— O.OG

Malay Banking.

..! 6.3

-0.1

k’ •njjppipwpiH-V/.^

—0.06

f-j /TjTT»TTtT5P^

.1 8.24

-0.05

9.90.

+ 046

Sum

JAPAN

May 18

i Pries i+ or
i Yen i — "

*2
-2
■>■5
— 1

+ 2.
+ 3

SWITZERLAND

Hoeohst

Hoesch

Hoclmann (P»

Horton ........wi..

Kali und Sato

Karstedt

Kaufhof.—

KHD. -

Kloeekner

Krupp .'

Unoc.

Lufthansa

MAN

Mannesman/)

Me rondo* Hlg...
MetalIgessell....J
Muench Ruck .

Prsussag

Rhein West Elect

Rosenthal

Sobering

Siemen

Thyesen

varta

Vaba

Versin-W st

Volkswagen i

ng.8; voa

24.5 -0.8

MaylB

Pries !
Fra.

+ or

396

1 +1

117.5, -1

145,5

1 -2

lBoa; -1

16 ia

-0.7

175.5

-1

59.9

-oa

59 fi

275

+ 4.5

6ea

-oa

155.6

—0.5

140 1

-0.6

244a

208

-2

5D5i.-10
1.000 -20
W10 -6

Alusuisse...

Brown Bovarl u
aba04lgv M . 1M ... .

do (Part Certs)..; X.01Q 1

Credit Suhse... J 1,800'- +10
Elektrowatt 20651 +35
Fischer (Gog) .. ..I 450i ....

Hoff-RochePtCts 58,760) -250

685 i +lO
2QBa -1J2

Interfood ! 5.725. .

JelmoH i laisi -10

Landis ft Gyr..—,! 885' -5

Nestle-, j 3 ,300 1 -90

!OerBuerlle H 1 1,150 —5

Pirelli. > - 236| -i

Sandcz(B) 4,i50i -40

.Sando2(PtCta/.. [ 538!

ISehlnd/erfPtCtlp ' 2B5I -5

swtwalr. 7is; -7

Swiss Bank..: 30B +2

Swiss Relnsca — [ 6-250; t BO
Swiss velksbk-... 995! +5

UnlonBank.; ll 2,950:

Winterthur ' 2.400 —25

Zurich Ins. 6,700,-

852
674

579 ; -6
436 'i -5
857 > —10
288 | .-7

628-1 —i

483 . -1
720 l +9
406 : —3
391 ! -3
385 1 — S
880 j +25

500 -

—40
+40

Ajinomoto - ’

Ameda 1

Asahi Glass....,...!

Bridgestone i

Canon-

Citizen..-

Daiel. .... ;

DKBO

Dal Nippon Ptg...!

Daiwa House.-...;

Daiwa Seiko

Ebara

Eisa/

Fuji Bank

Fuji Film.^ '!,460

Fujisawa .— .-.] 1.380
Fujitsu Fanuo....]5000 ! —50

CreenCnm^. ; 2,1 50 -J .>-20

Hasegawa....; ; 580 [ —14

HeJwaR) East;....! 568 j -9

Hitachi. ..—..I 687-; —12

Hitachi KDkI...J 503 -12

Honda 764 -16

HQvttfood 1,060- ,

Hoya TO1 ! -9 •

Itch (Cl f 288 * -5

I to- Ham 400 : 4 7

Jto-Yokado r BIS : —9

JACCS T..r^7.-443 I +5

JAL :....--.«,320 ; —10

Juseo ;• 600 ! +4

Kajima ; 358 f —3

Kao Soap ( Ml : +4

Kashiyama .;. j._.i
Klkkontaq........ _ J

Kirin ] ...

Kokuyo f 901 1-9

Konurtnj,.. . .486 . ' —3
Komatsu F ’Ift <15 \ -6
KonJehKriku j -627 > r +«

- O-® 6 ! Abereom .] 2.9 .

AEftd.... 7.15 ..

Anglo Am — ; I 1005 -O.Bi

Anglo Am Gold. 74.6 ! +0JB'

Ariigle' Am Prop + 2.60! - j

Barlow Rand ,... J .. 7.66! — 0.1»,

BuffelS..;....... ! 34.26 -=-0.75-

CNA Invest 7.0

Gums Finance,. , I 2 J 33 \ —0,15,

-11-

MBnn. 403, — 0.11;

1 DrieTontein 23.5 : — 1 |

FSGoduld^ 24.0 |

Gold-Fields SA.... 1 59.0
HighwidOleeL..]

f Kloof „ .

Hedbank ‘

OK Bazaars J

i Proto* HMgs. Ul ..!
Remfareuit^-...;

Renrtlos^..

Rust Plat- J

i Sage HIdg« [

, SA Brows.;:.;;.-..

Tiger oats. ‘ 18J ( — 0 JR

Unisec 5.45 —

4,12i — 0.1S

30.0 I
5.45- —0.10

18.26!

2.4 i -OJfe
9.60 -0J»!
'3.6 ! -oa
S.B

2 A , ,

4a i

’Hr'

J

l Ftotadal Band V5W&}'
(Discount of 12%) - • I

i

BRAZIL

‘tr-t?,: _

\+.~:

,

MaylB

Price

Oruz

+0r

825 -i -7
405 i —8

-445

! Aosita-.. ...

; BaneoAteaH...
[BelgoMJrw-..^...
| Lolas Am ef
j Pat rutH as PP.
Souza. Crui- .
-UrtipPE..

Vale Rio Does. .

:.l,6lf .-AM •

14,40:: ~o , n ;
5.5Q' *0.60 '

m "ilH
% ‘i.J

v ur -\-

ner — .6,75/ ». •

tePP— .; . 1 100 -Q.I3; . J." ; lf , .

Ipoga-V.: 1 '3808! ^A»5!

Tummerr. O.- 1,682.2m .

yetonw Z73:9n»^
Sbincsw- Rio -d*. Jntin>5£.'-

. NOTES— Priose co . this 'pegs jam a ' quoted <*t "BW i
tatfhrldusl a inhen g a ««* ate Mat haded jHtoa. t OesOng* !
suspended, Ktf Ex dhrideod. Hrip.lMati-xr&i t49b.- '

»B alL . ' .-*■

29

'-n.

S

E 19. 1982

TEXTILE MACHINERY MARKET

Saco Lowell: reborn into a tough world

E <IUIETLY, with none of the
publicity which attached to the
Yollapse of the parent Stone-
Platt Industries in March, the
■group’s textile machinery sub-
"■ Votary Piatt Saco .Lowell (PSD
has recently resumed produc-
■ T tion of spinning equipment at
'. r Accrington, in Lancashire.

> n Under John D. Hollingsworth
Bn Wheels, the curiously-named
new American owner which
. . bought the company last month
... 1 from the receiver, for a
1; tf.eported £ 12.5 m PSL has

: ■, .taken on a, total of 450 people
: gaud claims jo have enough work
ito last until the end of the
: .. jyear. The workload now con-
• . sists, according to Mr Edward
Smalley— Stone-Plait's deputy

■■*v thairman who has .been put in
' ^charge of operations at
..i 'Accrington by Eoliingsworrh —
- of business the company wanted

f retain. Other deals taken on
keep the factory full when
employment stood at double the
..new total before the collapse
jhave been allowed to lapse.

A policy of keeping over-
^ rheads to a minimum — and of
. vttnJy taking on business that is
/. (going to be profitable— forms
: at this stage the basis on which
Itapos now rest for the survival
a British-based, if no longer
. ^British-owned, cotton processing
equipment manufacturer. It is
'likely' to be folio-wed, too, by a
Reduction in factory floor space
' ^ffecupied by tile 'company which
3>uly three years ago employed
. .more than 3,000 people in four
.sites in Lancashire.

Yet the going in the fiercely
■i competitive textile machinery
business — a world industry
ftitherto dominated by . Euro-
pean groups — is likely, to
. continue very rough, with few
• ' signs that a significant .upturn
. an orders is in sight ■

- Orders have for some time
*beeh hard to come by and prices
are consequently depressed. In
■a telling remark delivered at
^ the time of Stbhe-Platt’s col-
lapse its former chairman Mr
Leslie Pincott pointed out that
4he price per spindle of spin-
ning machinery was at the
lowest level in- living- memory.

, The .effects have been
.felt, too. by PSL's Euro-
pean competitors in Switzer-
land. Germany and ' Italy.
Schubert and Saber, based in
In’golstadt in West Germany —
a company broadly comparable
with PSL — has, for example,
had two-thirds of its workforce
• on periods of short time at
; various-. times in the past few

By Rhys David

years, and reported losses of
DM 3.9m (about. £930,000) In
its .last financial year.

Rieter, which has bought
PSL’s sister company, the yarn
processing equipment manufac-
turer Ernest Scragg of Maccles-
field. has made only moderate
profits. In Italy the Marzoli
group has been seeking to
diversify into other engineer-
ing activities to reduce
dependence on textile
machinery. One of the few com-
panies able to report good
results has been Zinser, a pri-
vately owned German company
which claims not to have had
to reduce its 2,000-strong work-
force world-wide over the last
18 months or introduce short
time. The, company, which
competitors claim has been
quoting very low prices, also
says it has made “substantiai”
profits. In the three years from
1979. to 1982 ■ PSL’s trading
losses before Interest totalled
£10m.

The main problem for Euro-
pean textile machinery pro-
ducers, is the intense pressure
under which their main cus-
tomers, the textile manufac-
turers, have been struggling.
Sales of spindles fell back by
almost half after the energy
crisis of the mid 1970s. and
although there- has since been
a recovery, the main market is
now the Far East where the
Japanese, and local producers
with relatively unsophisticated
products, such' as the Indians,
are strong. In a number of the
more advanced -developing
countries there is . also now a
trend towards manufacturing
textile machinery domestically.

In developed country markets
the size and character of orders
has changed — a trend which
industry analysts believe PSL
failed * to anticipate... . The
emphasis has switched away
from big projects to incre-
mental investment and
machinery conversions aimed at
uprating existing installations.

To win business in both the
developed and developing coun-
tries the big European manu-
facturers are having to offer
very low prices and generous
financial packages and this -has
left little margin for error
should contracts -be' delayed or
otherwise run into problems

Customers around the world
are reluctant, the machinery
builders report to pay a pre-
mium price ■ for extra refine-
ments and in certain ureas can
threaten to opt instead for

WHERE THE COMPETITORS’ STRENGTHS LIE

IN THE battle for Inter-
national spinning equipment
contracts the main contenders
are a group of five European
producers — PSL in Britain,
Zinzer, and Schubert and
Salzer (both West Ger many ),
Rleler of Switzerland, anH
Marzoli of Italy. All are
capable, theoretically, of
supplying a. complete system
incorporating the various
processing stages from the
opening of cotton bales to
winding of yarn on packages
ready for shipment and nse.

In addition there is a group
of . specialist machinery
makers which have chosen to
concentrate on parts of the
processing . stages. Thus,
Tratzschler. another German
company, is very strong in
blow-room equipment — the
first processing stage— and in
carding, the aligning of fibres
into a stiver. (Crosrol in the
UK also make cards which are
one of the specialities of

John D. Hollingsworth, the
group which has acquired
Platt.)

In spinning itself, PSL.
Zinser. Rieter, and Schubert
and Salzer, are generally
considered to be broadly com-
parable in technology, and,
with the exception of Zinser,
the others are major pro-
ducers of rotor . spinning
equipment, an alternative to
conventional . ring spinning
developed over the last 15
years and used mainly in the
production of coarser yarns.
The biggest world producer of
this equipment is Investa, a
Czechoslovak company, with
the Russians boasting far and
away the largest number of
installations.

In winding, the transfer of
yarn from the smaller pack-
ages used 1 In spinning to
bigger ones for despatch to
customers, the market is domi-
nated by another German
group, Schiafhorst and by the

Italian group Savio. The t-ne
major gap in the PSL range
is winding where the company
is obliged on major projects
involving complete installa-
tions to supplement its own
products with equipment
manufactured by one of the
specialist producers.

Apart from the established
suppliers of spinning systems
there are various other com-
panies offering unconventional
approaches to yarn spinning
and most of the major groups
Including PSL have in various
stages of development new
ideas for solving the problem
of how to move from fibre to
yarn in the shortest possible
time. -

PSL’s development in this
field— still highly secret —
is rumoured to he a
friction-twisting system and
this is thought to be one of
the reasons for Hollings-
worth's decision to purchase
the group. On taking over

PSL the American company
announced it intended to
carry on research and develop-
ment into '’advanced spinning
technology” with the object
of manufacturing successfully
developed products in Lanca-
shire.

The demand from customers,
particularly in Hi* developed
markets such as Europe.
Japan and the ILS. b for ways
of making spinning operations
less labour-intensive and
more highly-automated, with
the ultimate objective the
spinning plant where raw
fibre can be fed in at one end
and yarn will come out the
other.

Considerable advances in
this direction have already
been made with machines
incorporating automatic doff-
ing — the removal of yarn
package^ from the spindle
when full— and automatic
tying of yarn after breaks.
Traditionally this operation
has required manual attention.

In war, in peace

Ute When help is needed, please
help him and his dependants

Adonatkm, a covenant alegacy to

THE ARMY BENEVOLENT FUND

wfflhdpkildieraexsakli^

i TEFL FMaSEOFYORKS H&LONDOK SK34 SS>hmmm mm

BASE LENDING RATES

■A.B.N. Bank 13 %

"Allied -Irish Bank ...... 13 %

American Express Bk.- 13 T*

, Amro- Bank 13 % >

!?- Henry Ansbacher 13 %

'Arbuthnot Latham 13 % 1

• Associates Cap. . Corp- 13 %

- Banco -dc Bilbao -13 -Kj

BCCI 13 ^

■■ Bank Hapoalim S’l ... 13
t Bank Lcumi (UK) pic !•» %
Bank of Cyprus ........ 13 %

Bank Street Sec. Ltd. 14 %

i Bank of N.S.W. ....... 13 £

Banque Beige Ltd. ... 13 % I
. . Banque du Rhone et de I

la Tamise S-A. ...... 1SJ%

r. ■ Barclays Bank ......... 13 %

Vi Beneficial Trust Ltd. h. 14 %

’ Bremar Holdings Ltd. 14 J6

- Brit. Bank of Mid. East 13 %

cl Brown Shipley

l ; Canada Perm’t Trust... M.**

. Castle Court Trust Ltd. 1.'?%
i Cavendish G’cy.T’st Ltd. 14 %

Cayzer Ltd -—' %

Cedar Holdings 13 %

■ Charterhouse Japnet... 13 %

Cboulartons

- Citibank Savings .......31/1%

Clydesdale Bank ■ ' »■* *

C. E. Crates ........... % ,

■ Comm Bk of Near East 13 %

• -Consolidated Credits... £

..Co-operative Bank. * ..

■ Corinthian Secs. -— Ij' £■ t

The. Cyprus Popular Bte 1 3 %
Duncan Lawrie }J.!S.'
Easrl Trust 13 %

E.T. Trust ............... 13 %

-Exeter- Trust Ltd. 14 % :{t

First Nat .Fin- Corp.... 5
.First Nat. Secs. Lid..... 154% '

Robert Fraser 14 %

Grlndlays Bank $13 %

a Guinness Mahon 13 %

I Hambros- Bank .... 13 %

Heritable & Gen. Trust 13 %

BHili Samuel .. |13 %

C. Hoare & Co. ■■■■.' J3 %

Hongkong & Shanghai 13 %
Kingsnorth Trust Ltd. 14 %
Knowsley & Co. Ltd. ... 13j%

Lloyds Bank 13 %

Mailinhall Limited ... 13 %
Edward Manson & Go. 14 %

Midland Bank 13 %

l Samuel Montagu 13 %

I Morgan Grenfell 13 %

National Westminster 13 %
Norwich General Trust 13 %

P. S. Refson & Co 13 %

Roxburghe Guarantee 13*%

E„ S. Schwab 13 %

Slavenburg’s Bank ... 13 %
Standard Chartered ...|113 ^

Trade Dev. Bank 13 %

Trustee Savings Bank 13 %

TCB Ltd. i... 13 %

United Bank of Kuwait 13 %
Wbiteaway Laidlaw -. .13}%
Williams & Glyii’s ...... 13 %

Winlrust Secs. Lid. ... 13 %
Yorkshire Bank:..;...;.. 13 %
} Mambora of iha Accaptln^ Houses
Committee.

7- day ■ deposits. 10%. 1 -month.

10^S%i Short term-' £8,000/12
month 12-8%.

7-day deDbsiK'on-sHms'dfc under
.£10.000 .10V.1, . £10,000 . op to
£50.000 11%. ' £30.006 'and over

Call deposits El ,000 and over
10%. ■

21-day deposits ove^ £1.000.11 ^%.
Demand deposits 101«%. ■
Mortgage base rate.-

cheaper — and currently less
sophisticated — Japanese
equipment To get their costs
down European builders have
had to look at their research
and development budgets and
in PSL's case this has led to
delays in -the modernisation of

some parts of its range now
generally reckoned to be out-
dated. ‘ The lavish after-sales
service offered by machinery
builders, with engineers often
attached for months to installa-
tions, has also been scaled
down.

PSL — the product - of a 1973
merger between Platt and Saco
Lowell, a U.S. producer with
plants in South Carolina and
Spain — is generally thought to
have suffered from having too
wide a product range, with too
many variants on offer. This is a

criticism accepted by the com-
pany and some pruning of the
product range is also now likely
to take place.

Just as importantly PSL’s
Continental competitors have
been able to co-operate in put-
ting together overall packages

of different items of equipment
to win major contracts. The
I tali an industry, much of which
is controlled by state enter-
prises. works in this way: but
an attempt three years ago by
the British Textile Machinery
Association to set up a
consultancy which would be
responsible for putting together
British consortia to bid for
major overseas contracts
foundered.

At the same time PSL,
according to customers, has had
to struggle hard to match the
very thorough after-sales service
offered by the leading Con-
tinental groups, a problem
which has apparently worsened
over recent years as the com-
pany's financial difficulties have
increased.

While Carrington Viyella,
one of the big UK textile
groups relied mainly on PSL
for the equipment used in its
new £6m Atherton spinning
min in Greater Manchester, a
more recent re-equipment pro-
ject by Tootal at Lisnaskea in
Northern Ireland went very
largely to overseas suppliers.

PSL’s share of the business
at Lisnaskea was confined to
roving equipment, an inter-
mediate stage of production
between sliver and yarn where
it was asked to add to equip-
ment already installed at an
earlier stage of modernisation
at the plant The main spin-
ning equipment contracts went

to German-based groups, which
were also nominated by Tootal
for the more recent re-equip-
ment of one of its thread mills
in South Africa.

PSL's strengths, however, in-
clude its operations in the U.S.,
one of the fastest-growing mar-
kets for textile machinery over
the past few years, where it
employs some 1,250 people.
The company’s rivals together
with the manufacturers of other
items of textile machinery such
as looms for weaving, have all
been scrambling to establish
bases in the U.S. to take advant-
age of American demand.

Through Saco Lowell, PSL
also, has manufacturing facili-
ties in Spain employing a
total of 500. In an earlier
stage of rationalisation within
the group, responsibility for
manufacturing different parts of
the range was assigned to the
British,-Spanish and U.S. plants
to cut out duplication. The
Spanish plant again is well-
positioned to take advantage of
growing demand for textile
machinery in southern Europe.

The role likely to be played
by the Accrington plant will de-
pend on the success of efforts
now being made to contain ovei>
heads — and on the level of
new business which becomes
available over the next few
years, and on prices. For the
time being, however it survives
with its new owners intent evi-
dently at least to give it a
chance.

working region on the move

8.30 am at Cadorrta Station on the Milan Metro. Cariplo played a key role in financing the Metro's construction.

Since construction on the Milan Metro began in
1953, over 45.4km with 57 stations have been comple-
ted. Another 15.1 km and 2 1 stations are under way. '
And Cariplo has been massively involved in
financing the project.

It's one vital way we can contribute to the
continuing growth and development of the Lombard
economy that is already producing 21% ofltaly's
Gross National Product

The economic strength

of the region is a major rd/i'i d
resource at a time when
we are expanding our inter- CASS A DI R1SPARMIODELI

national banking operations, with a full branch in
London, and another representative office, in HongKong.

If you want to do business in Italy through one
of our 460 agencies throughout the country, or are an
Italian company looking for an international banking
connection, get in touch with us through our new
London branch at 6 Bishopsgate, London EC2N 4AE.

Tfel: 01-283 3166, Tfelex: 887641; or at our Head Office,
Via Monte di Pieta 8, 20121 Milan; or through our

representative offices
in Brussels, Frankfurt,

Hong Kong, New York
£ PROVINCE LOMBARDE and Paris.

The Lombard Bank

i

Attracting people like Abbey National

is a habit of ours.

MILTON KEYNES

CLIVE THORNTON.

chief general manager, abbey national building society

31

FhaDcial'HmesW 1982 -

Comsames and Markets

LONDON STOCK EXCHANGE

Interest restrained by risk of Falklands escalation
Share index down 3.4 more at 572.4— Gilt-edged react

RECENT ISSUES

EQUITIES

Account Dealing Dates
Option

•First Declare- Last Account
Dealings tints Dealings Day
Apr 30 May 13 May 14 May 24
May 17 June 3 June 4 June 14
June 7 June 17 June 18 June 28

• '* Now time " dealing may. tafcw
place from 9 am two business days
earlier.

Fears of - an- imminent escala-
tion of the Falklands conflict
continued to restrain interest in
stock .markets.- Equity values
were usually lower with British
Funds, resistant on Monday,
, joining 7 the downward trend. -
- The further setback in leading
. -shores was less severe than on
•V Monday, a little cheap buying at
- tfee lower levels ruling at the
j ; 1 opening helping to sustain quota-
tions. Dawn 4.8 at the 10 am
calculation, the FT 30-share index
. rallied to reduce the fail to 3.1 an
%noiir later and traded around
the : lower level for much of. the
session following the previous
day’s drop of nearly Ifi points.
Yesterday, the index (dosed 3.4
lower for a two-day drop of 18.2
Vat 572.4.

.Among the constituents. Blue
Circle turned weak in the late
trading on reports of a large
line of shares on offer.

Trading conditions remained
- thin and sensitive because of the

prevailing uncertainties, hut bid
situations, both rumoured and
actual, created a fair amount of
interest. Bemrase featured with
.a jump of 53 to 129p following
the dawn raid and subsequent
bid of 12Gp per share from Bunzl.

The recent steady to firm
trend in British Funds gave way
to dullness against a backdrop, of
the increasing possibility of
military conflict in the Falklands.
Senttment was weakened by
sterling’s fall against other inter-
national currencies and by the
continuing firming of rates in
money markets. Long-dated-,
stocks fell by J and occasionally
more, while losses at the short
end of the market ranged to f.
The Government securities index
shed 0.27 to 69.07.

Grmdlays good late

Standing 5 cheaper at the
“ House ” close, Grlndlays rallied
smartly after-hours to dose a
net 8 up at 22Sp on hopes that the
recent mystery buyer of Mass
Development of Kuwait’s 11 per
cent stake will reveal bid terms
along with its identity today..
Elsewhere. ANZ, still reflecting
disappointing half-year results,
lost 10 for a two-day drop of 30
to 230p. Guinness Feat gave up
4 to 7Sp following confirmation
of the sale of the group's Biddle.

Bit X ; :

450

400

350

ENGINEERING

CONTRACTORS

F.T.- ACTUARIES INDEX

A S

1981

e m a
1982

May

18

May May
. 17 J 14

May

15

V

•' Government Sees ....

60.07

09,34| 69.15

69,21

69.41

Fixed Interest

69.81

69.74j 69.97

69.90.

69.78

Industrial Ord... ......

572.4

575^1 590.6

585.2

590.9

Bold Minos..

240.5

236.41 235.9

231.8

229.8

. Ord. Dfv. Yields.

5.43

. 5.3s| 5 . 27 ]

6.3^

5.2®

^ Earnings, Yld.£(fulD

11.22

11.14! 10-90!

lLOOi

11.04

: PJE Ratio (net) C*) —

10.89

10.96) 11.21

11.11

11.16)

^ Total bargains-..

17,043

16,947l 17.790

15,467! 18,2121

- Equity turnover £m.

_

111,56! 167.18,

146.69 175.45

; .Equity bargains

23,6901 15,835

15.387 14,804!

FINANCIAL TIMES STOCK INDICES

May

11

A

year

ago

68.94!
69.3V
585,1
226.0
5.33
11 .
UJ

67.33

68.78

555.9

370.1

532

11.60

10.82

98! I
51 1, 1

10 am 571.0. 11 am 572.7, Noon 573.7. 1 pm 572.7.

. 2 pm 572.7. 3 pm 572.5.

Basis TOO Govt. Secs. 16/10/26. Fixed Int. 1928. Industrial Ord.
1/7/35. Gold MinBS 12/9/56. SE Activity 1974.

Latss Index 01-206 8026.

* Nll=10.09.

HIGHS AND LOWS

S.E. ACTIVITY

1982

Since Compilat’nj

High

' Low

High | Low |

Govt Secs—

69.55

03/5)

61.89

am

137.4,1 49.18 f
(8/7/S5) ; (3/1/75) (

Fixed Int—.

69.97

11415)

62.79

am

150.4 1 50.53
C28/11/47) (3/1/75] 1

. Ind. Ord—...

590 J)
(12/6)

618.1

(6/lJ

597.3 1 49.4 |:
(S0/4/8I) (26/6/40} r

.Gold Mines.

302.0.:

(B/l^

2092

Pb8)

558.9 1 43/5 E
(22/H/80J (26/m/71)j

n*— j

lit

Barg

Iquiilc
Bargains..

Value

■day Avrge.l
Ift-Edged ]
Bargains...
iltlea

May

17

155.3

88.7

£25.1

162.7

96.BJ

302.61

May

14

149.9

102.6

337 9

167.3

97.4

317.8

Sawyer subsidiary. Lloyds Bank,
at 395p, doubled an early fall of

5 following LBI’s disappointing
half-year figures.

For the third consecutive
trading day, Mlnet attracted
speculative support on talk of a
bid from Corroon and Black of
the U.S.; the shares improved
steadily to touch a 1982 peak of
196p before dosing 4 better on
balance at 191p. Among other
Lloyds Brokers, profit-taking in
the wake of satisfactory pre-
liminary figures left C. E. Heath

6 off at 332p. while Willis Faber
became active but closed 5 lower
at 465p. In Comuosiies. Phoenix
gave up 6 to 234p: the third-
quarter figures are scheduled for
next Tuesday.

In the Unlisted Securities
Market, television and video
wholesale distributors Michael
Black, incorrectly referred to
here yesterday as Mart In Black,
hardened a penny to 93p as
against the placing price of 90p.

Breweries trended easier, Bass
reacting 3 to 229p and Greenall
Whitley 2 to 119p.

Blue Circle turned dull in
Buildings, falling 14 to 480p;
vague rumours developed in the
late trade, including talk that a
large line of shares was on offer.
Other leading Issues also gave
ground, Taylor Woodrow losing
20 to 52flp and Costain 5 to 244p.
Tarmac and BPB Industries shed
4 apiece to 560p and 442p respec-
tively. Elsewhere. renewed
speculative demand in the wake
Of recent good results lifted
Tysons (Contractors) 6 to 4Sp,
While revived buying in a thin
market prompted a gain of 15 In
240p in Burt Boulton.

Marked a couple of pence
easier at the outset. I Cl rallied to
the overnight level of 3l8p before
drifting off again to close 2
cheaper on balance at 3l6p.
Among other Chemicals. Laporte
shed 3 to 141p and Amersham
2 to 212p. - The chairman’s
optimistic statement at the

annual meeting made no
apparent impression on Anchor,
-which held at 85p.

S. & U. Stores up

Secondary Stores were
featured by renewed strength in
S. and U„ which continued to
reflect bid speculation with a
fresh jump of 5 to 24p. Green-
fields Leisenre moved up 2 to
31p on the announcement that
Nottingham Manufacturing are
the holders of a near- 10 per cent
stake in the company,, but Polly
Peck lost 10 on profit-taking Id
370p. Among the dull leaders,
Gussies A gave up 7 to 490p and
House of Fraser fell 6 to 150p.

Quietly dull conditions pre-
vailed in Electricals. Recent
popular defence stocks drifted
lower, with Kacal closing 7
cheaper at 410p and Enroth erm,
a similar amount lower at 423p.
Ferranti eased 11 to 707p, while
Cable and Wireless relinquished
5 to 266p and B1CC 4 to 323p.
Plessey touched 420p before
finishing 3 down at 422p, while
GEC softened a couple of pence
to SSSp.

Overlooked recently, ML Hold-
ings attracted buyers yesterday
on consideration of the company’s
defence interests and, in a thin
market the shares responded
with a rise of 15 to 295p. Other
secondary Engineerings turned
dull. Falls ranged to 10 with
the recently firm Chemrtng
finishing that much lower at
365p. United Engineering also
dipped 10 to 250p, while Matthew
Hall fell 6 to 190p and a M.
Firth relinquished 5 to 173p.
Currently in receipt of an
unwelcomed 135p per share cash
bid from Charter Consolidated,
Anderson Strathclyde eased 3 to
138p. Of the quietly mixed
leaders. GKN lost 2 to 160p but
Tubes firmed that much to 146p.

Easier at first reflecting the -
price cuts introduced by Tesco,
Food Retailers steadied and

FT-ACTU ARIES SHARE INDICES

These Indices are the jefnt ca mpfl a tt en of the Ffemcal Times, the Institute at Actuaries

and Dm Faarfty of Actuaries

FIXED INTEREST

4

HMCE

HHHCES

Toes

May

28

Day^

daege

%

Mon

ltd *8.
today

mf adj.
1962
to date

■ h

.2

MM Burernfut

12144

-4J8

nia

4.70

—

HIM

-649

12242

—

443.

Owr 15 years

124.97

-051

13556

—

522

fj

U9J6

-0J4

13958

—

g

11187

• —

y

me

"W

—

*n

H

6*40

+0J5

64.44

—

513

AVERAGE GROSS
REDEMPTION YIELDS

MnGmmcot

&4

Low

Coupons

Media*

Coupons

m

UnteenUB.

5 yean... —

15 jem 1

25 yews.

5 ion

15 yean. —

25 yean.......

5 yean. —

15 yens. —

.25 yean.

1U9

r?(s

12.65

13.96

1174

1327

1335

13.95

1349

3221

1142

1257

1260

DAT

BM

1325

1177

1325

1338

1224

1147

1261

12.73

1376

1428

2392

13.77

15.49

1423

1220

Mi A Loan 5 yean

15 yean

25 yean-

IWIimim

rreiBHHf

M.93

UK

1463

2532

1499

1473

Mil

1536

1493

14.95

149S

14.97

RBt jieM. Hfgte and tows record, base teles, wtaes and constituent changes are puUhhed in iSabirf* lows- Anew rstofmfiatoef^is
Lg^alJe^wn pubfetas, The Financial Times. Bractan House, Cannon Street, London, EC4P 4BY, pnee 15o. Hv po« 28o.

NEW HIGHS AND
LOWS FOR 1982

The Mlnmg a uo tattons h i the Share
informatfon Service vcrtertlav atttfcied nnr
Highs and Lows tor 1982.

NEW HIGHS (39)

COM 'WEALTH ft AFRICAN LOANS d>
S. Rhod. 2‘IOC N-As.

LOANS (3)

Ffl 1 1 pc Uns. Ln. FFI 12PC Uns. Lti.

1998 1992

FFI 1T3*PC Uns. Ln.

1990

FOREIGN BONOS (11
Greek 4pc Mfaed Ass.

AM KM CANS -til

Lowes

CANADIANS <T)
Massey-Ferguson

BANKS (1)

Gnndtovs

BUILDINGS <41

Bret dan Lime Francis Parker

Burt Bolton May ft Hassell

STORES (51

Brown (NJ S. ft U. Stores

Greenfields Do. 2Spc Prel.

Race (Austin) A

ENGINEERING (1)

Weeks Assoc.

FOODS (11

Glass Glover

HOTELS <11

Savoy A

INDUSTRIALS <71
Electrolux Nolton

ExtfH Prestige Croup

Lep Group Star Computer

Hunting asioc.

INSURANCE (f)

Mlnet Hhlgs.

MOTORS <11

Volvo

PAPERS 111

Bemraso

SHOES (1)

Lambert Ho wart h

TRUSTS (S>

Hedge! me Inn. London Merchant

Gen. Consolidated

OILS (3>

BP Bpc Pref. Shell Trans. 7 pc Prf.

LASMO 14pc ’81-93

OVERSEAS TRADERS (II
Steel Bros.

TEAS (1)

Moran

NEW LOWS (63)

AMERICANS (2>

Caterpillar Lone Star

CANADIANS (5)

Bank Montreal Royal Bank Can.

Bank Nova Scotia Toronto Dom. Bk.

Can. Imp. Bank .

BUILDINGS I2>

Crouch (Group) GJosscp

STORES (SI

AcsH JewellCrv Wootworth

Ben tails

ELECTRICALS Cl)

Chloride Group VttWron

Chloride Grp. 7 hoe

Com. Conv. Prei.

ENGINEERING (61
Allen (W. G.» Desoutter

Brotherhood (P.l Elltott (»■ >

Cohen CA.) Smith Whitworth

FOODS (4*

Needier* U u

Tm 4 mn gT!?

Epicure INDUSTRIALS !»'

BTR Foseco Mtnsep

BkJdfe Fra nets WdS.

Bawater Low ft Bsoar

Brengreen Mettoy

Srltun vita PilldnfltOO Bros.

Eurndene Talhex

Christie- Tyler

INSURANCE (2J

London Manchester Sun Alliance

MOTORS 12)

Aopleyard Hcnlys

NEWSPAPERS (1)

BPM Hldgs. (12>

Amatg'd Estates Lend. ProvL Shoo

Apex Props. Lond. Shop Prop.

Country & N. Town 9PC 1994-99

Ests. Prop. Inv. Lynton Hldgs.

Laganvale Ests. Thames Inv. & Secs.

Lalng Proes. BftpC TruK Secs.

Ln. 2000-05 Cow -

SHIPPING (11

Lon. O'scas Frghtrv.

TRUSTS <2>

Int. Inv. Tsl Jersey M. £rouo

OVERSEAS TRADERS 121
Boos read " Crosby House

RUBBERS 111

Bcrtam

MINES (11

Minefields Explrjn.

closed wirh modest gains on
balance. Associated Dairies
picked up to close 2 dearer at
120p, after ll6p, while J. Sains-
boxy settled 5 up at 605p,

595p. Kwtk Save slipped to 222p
before reverting to the overnight
level of 224p; Tesco hardened i
to 53 Jp. Standing 5 cheaper
awaiting the preliminary results,
Amos Hinton rallied well on the
announcement of nearly doubled
pre-tax profits and a 33 per cent
dividend increase to dose 7 up
on balance at 3l7p. Elsewhere,
Huntley and Palmer shed 3 to
93p . following the chairman’s
gloomy statement at the annual
meeting, while United Biscuits
gave up a like amount to a 19S2
low of 109p.

Grand Metropolitan drifted off
to dose 6 down at 212p. while
Ladbroke eased 3 to 150p. Among
other Hotels and Caterers, Savoy
A met renewed speculative sup-
port on bid hopes and gained
ID to 214p, while M. F. North
added 2 to 33p on demand in a
thin market

Wolseley-Hughes down

Falkland Islands worries
deterred investment interest in
the miscellaneous industrial
leaders. Consequently, prices
drifted lower on sporadic offer-
ings and continued lack of
support Pilkington were notable
for a decline of 13 to 235p, while
Unilever lost 14 to 596p on
further consideration of the dis-
appointing first-quarter results.
Further profit-1 akin” clipped 7
from Glaxo, 670p, after 666p,
while Sowater lost 4 to a 19S2
low of 20Sp. After Monday’s fall
of - 4 despite the one- third
increase in first-half profits — not
annual profits as stated in error
here yesterday — BOC rallied 2
to 167p.

Wolseley-Hnghes fell 7 to 36Sp
following the announcement of
the £17.1m U.S. acquisition and
proposed f 10.1m share-placing to
partly finance the deal. John
Williams of Cardiff lost 2 to 2Sp,
after 27p, following poor interim
figures, while BTR remained on
offer at SISp, down S. J. Bibby
fell 10 to 250 .d and CL R. Holdings
15 to 245 p. Lonsdale Universal,
on the other hand, hardened 2
to 67ip, to match the increased
cash offer from John Heuzies, 4
lower at 240n; British Printing,
the holders of a near-11 per cent
stake in LU, hardened a frac-
tion to 34p.

After Monday’s after hours’
announcement that Lucas Indus-
tries had sold its 11] per cent
stake in the company. Auto-
motive Products shed 4 to 52p.

Bemrose Corporation jumped
53 to 129p on the dawn raid and
subsequent bid worth 120p per
share from Bunzl, 8 down at
ISOp.

Properties cloned with small
mixed movements following
cautionary Press comment.
Further consideration of the pre-
liminary • results left . Land
Securi ties 2 cheaper at 28lp, but
MEPC attracted steady support
and Improved 3 to 200p. Capital
and Counties shed 2 to 118p and
Great Portland Estates 4 to 162p,
but recently dull Hammer-son A
rallied 5 to 530p with the new
nil-paid shares a like amount to
the good at 35p premium. Else-
where. Apex gave up 5 to HOp

and Percy Billon 4 to 196p on
lack of interest, while Xega Han,
a rising market recently on
speculative support, relinquished
a penny to 62p.

Oils easier

Oils went easier, on Wall
Street advices. British Petroleum
shedding 4 to 3IQp and Shell,
first-quarter figures due today,
softening a couple of pence to
414p. Burmah shed 3 to 134p,
Tricentrol 4 to 204p and Lasmo
5 to 330o. Canadians were a
dull on. Transatlantic influenc
Cheynne Resources lost 20
70p and Sceptre Resources
to 260p, while Warrior Resour<
gave up 5 to 32p and Don'
Eagle 6 to 37p. Ham bo R Energy
lost 3 to jL2p.

Among Trusts. dea
resumed in Finance and t
trial Trust at 29p, compared
the suspension price of
following the bid of 30p casl
share from Banner Securities
for the 36 per cent minority not
owned by parent Harmer
Finance.

Against the trend in Ship-
pings, Walter Ranchman
responded to the preliminary
resnlts with a rise of 5 to 105p.
In contrast. J. Fisher eased 5
to 160p, while Ocean Transport
dosed a few pence cheaper at

112p.

Golds up again

An increased amount of
nervous bear covering in view
of the heightened tension over
the Falklands crisis led to
further modest gains In Golds,
and extended the recent
recovery movement to a fifth
successive trading day.

Heavyweights registered gains
ranging to i. as in Randfontein,
£251. and Bnffels, £15], while
medium- and lower-priced issues
were featured by Kinross, 26
higher at 477p, and Libanon.
24 to the good at 694p.

The Gold Mines index put on
3.9 to 240.3, a five-day rise of
14.3. while the bullion price was
finally 75 cents easier at $337.25
an ounce.

The paucity of business in
London equity markets was frilly
reflected in Traded Options. Only
1,126 deals were arranged, com-
prising 680 calls and 44£ puts.
BP attracted a reasonable
amount of activity with 258 deals.

Issue

price

A

Amount
paid up

_ 0

1982 |

High

LOW

I «99.S85 : £25

14/7

25

Blip

^100

£10

1/V

IBI 4

Ills

T9

136

156

*100

47

39

*100

F.P.

—

46

45

'100

£10

—

11

11

£100

F.P.

louts

J92^

rlOO

F.P.

100

100

II 107

F.P.

29/4

11313

1091s

Issue l§ = ;gco|
price i ®n'® 2 a|

0 !!ll 5 !°i

1982

High

140 1f.pJ 14(5 |l70
■TB50 ! — i — |270

{90
16
;io>5
5260
60
1102
<1S0 <FJ>.|
♦B7ifip|F.P.

If.p. -

;FJ».15/4

F.P.S1/5

If.p. 4/6

F.P.I2B/5
F.P.I

*250
D 1
2120
136

F.P.

F.P.I

'F.P.i

F.PJ13/5
F.P.i

94
32
109
375
62
135
151
98
17
1250
— ,275
7/5 134
141
90

2B/6

14/5

Stock

LOW I

:So — - »oi“b . o

ifj € or-f 5 s,£

:2 a . — a cc5!i3>-l a -o:
o ;

W|

140
265
92
19
105
.293
! 59
122
140
92
10
246
1267
120
134
70

AIM Group 10 d.... .... 170
Assoc. Hoot Serv<eesl270
*8iaokiKichacli20p! 93

Cambrian ft Gen^ip, 33

!*Ca*s Group 10p....il08
iiiCont. Microwave... 355
*DeBrettiAndrei lOp 59

Dew (George*.: 1|6

ADruck Hldgs. 1 1->S

lEI , tro-PriteCpUSS0.5D 92
-Grip Inv Option Crts, lo

.*Io Technology ;247

jiJebsens Drilling.... 265

|iS<Leisure Jnde. 120

Standard Secs. ( l»4

Zambia Cons Cpr 10K 70

i + i

i-5
+ I
-2

bdB.75 1.91 4.815.3
b9.0 2.li 4.8.13.7
Iu3.0 1 2.4 4.6|12.9

' ~~ ..5

< 2.6: 3.3,16.5

;-15 ib5.25; 5.9| 2.1T3.2

1-1 'b2-5 'a.i'6.i:-'"

S5.7 ! 4.0' 5.5:

,'-l ,'b2.3 j 2.5l 2 JJ,
-S ,uC1.5c 8.91 0.9

T1.2

5.5

26.0

12.4

bl7.5l 2 . 3 ! 9.4 6.5

1—2 b6.0 I 2.8} 5.9! 8.3

|b2.8 I 1JB 3.O;40J

FIXED INTEREST STOCKS

= * !+ or

| DV

i B o

s°

os

Cred. Foneier-de France 14?% LonJM7l 24 ! i|

East Anglia Water 9« Red. Prf. 1987 ,.1 12i 4 |

First Nat. 19*po Conv. Uns. Ln. 1987.jl3s» |

Grt. N'rth'n Inv. 4pe Net Cum. Prf. £1. 47 ]

DO. 4.7pc Net Cum. Prf. £ll 46

Mid-Southern Wfr. 0% Prof. 1987 .11 ~.~

Nationwide Bdg. Soc. 14^4% i25/4/83i 100 U -to

Do. 137 e ^i25/5l83i 100 !

Queens Moat 10(£Cnv. ‘89-91 113isj

“ RIGHTS ” OFFERS

Issue

price

P

Am'unt
paid up

Latest

Renuno.

date

• a

1982

Stock

o*

+ or

High

Low

10

F.P.

27/4 28/5

I5S.I 13

Ansbaeher iH.' 5p

mi

170

13/5

£4/8

190

180

Bank Leu mi tUKi £1

165

125

F.P.

21/4 2B/5

160

155

Beazer tC. H.i lOp

160

AS1

Nil

24/5

7/6

iBiepm

3>?pmlBond Corp

9>2pm

135

Nil

44pm

28pm|Car!ess Capet lOp

28pm

l—B

20

F.PJ30/4 28/5

86

40

Fisher (A./

42

+ 2

5

F.P.

10/5

21/6

6

5

GrovebcM (5pi

51c

10

Nil

—

12i a

10

Hallam. Sleigh A Choston. ..

10

500

Nil

20/5

18/6

90pm

75pm:Hammereon Prop

35pm

+b

600

Nil

75pm

30pm

Do. A

35pm

+ i

120

F.P.

7/5

4/6

169

144 luiley

170

145

F.P.

12/5

7/6

187

176

Low (Wm./ 20p

176

—4

18

Nil

21/5

4/b

14pm

3pm|North Kalguri.—

4pmi

6

F.P.

19/4 21/5

8

6‘z Platignum 5p

8/2

+

27

F.P.129/4 27/6

291?

261-

Efueena Moat

29

98

F.P J16/4

4/6

107

99

Riley LeiLurc

106

170

F.P.I 14/5 11/6

284

272

Steel Bros.

242

+ 8

10

F.P. 24/3

23/4

12 lz

lOifi

Sturia lOp

111;

133

F.P. 10/5

10/6

160

146

Vickers (£1>

152

-3

Renunciation data usually last day for dealing free of stamp duty, b Figures
based on prospectus estimate. <f Dividend rata paid or payable on pan of
capital: cover based on dividend on lull capital, g Assumed dividend and yield,
r Indicated dividend: cover relates to previous dividend, P/E ratio based an latest
annual earnings, u Forecast dividend: cover based on previous year's earnings.
F Dividend and yiald based on prospectus or other official estimates for 1932.
Q Gross. T Figures assumed. • Figures or rspan awaited, t Cover allows lor
conversion of shares not now ranking (or dividend or ranking only tor restricted
dividends. § Placing price, p Pence unless otherwise indicated. 7 Issued by
tender. 1} Offered to holders of ordinary shores se a "rights.*' M Issued by way of
capitalisation. §§ Reintroduced. 11 Issued in connection with reorganisation,
merger or take-over. ||H Introduction. Q Issued to former preference holders.
■ Allotment loners (or fully-paid). • Provisional or partly-paid allotment letters.
1c With warrants. It Dealings under special Rule. >3< Unlisted Securities
Market, it London listing, f Effective issue price after scrip, t Formerly
dealt in under Rule 163(2) (a), tt Unit comprising five ordinary and three
Cap. shares. A Issued free as an entitlement to ordinary holders.

OPTIONS

First Last Last For

Deal- Deal- Declare- SetUe-

Ings ings tion meat

May 10 May 21 Aug 12 Aug 23
May 24 Jane 11 Sept 2 Sept 13
June 14 Jane 25 Sept 16 Sept 27

For rate indications see end of
Share Information Service

Stocks traded in for the call
included Imperial Group,
Coartanlds, Horizon Midland f
Elecro Protective, Clyde Petro-
leum. Burmah Oil, Lasmo, First
National Finance, Camrex and
TSW. Cheynne Resources and
Oil Company Australia were
dealt in for the put, while
double options were arranged in
Trident TV A. Horizon Midland
and Imperial Group.

ACTIVE STOCKS

Above average activity was noted in the following stocks yesterday

Stock

Closing

price

pence

Day's

change

Stock

Closing

price

pence

Day's

change

BICC

323

- 4

Heath (C. E.)

332

- 6

- 8

4

Bsacham

.. 272

- 1

Minet Hldgs

191

+ 4

Bemrose Corp

.. 129

+53

S. & U. Stores

24

4 5

Electro-Proactive ...

.. 92

- 3

Tysons (Contractors)

48

4 6

Grand Met

.. 212

- 6

Willis Faber

465

- 5

MONDAY’S ACTIVE STOCKS

Based on bargains recorded in S.E. Official List

Monday's

Monday's

No. ol

closing

No. ol

closing

price

price

Day's

price

price

Day's

Stack

changes pence

change

Stock

changes pence

change

Minet Hldgs

18

187xd

+ 3« a

Electro - Protec

SIbxo

18

677

-13

Corp ol Amer

11

95

- 1

3AT Inds ...

.. 16

442xd

-15

Grand Met ...

11

218

- 5

Unilever

15

610

-10

Shell Trane ...

11

416

- <

SEC

14

690

-13

CBrlese Capel

10

163

- 3

tacsl Elect

.. 12

417

- 3

GUS ‘'A”

10

497

- 5

Courtaulds

.. 11

83

- 5

GRE

10

270xd

- 7

Thorn EMI ...

10

445

- 5

RISES AND FALLS

Rises Falls Same

British Funds

1

79

12

CorprtS. Oom. and

10

17

50

112

435

796

45

184

239

Oils -

14

3S

54

Plantations

2

4

17

Mines

50

30

79

Others

62

41

60

Totals

237

829 1.347

APPOINTMENTS

Industrial director for Welsh Office

Dr Jim Driscoll, currently
South Wales head of the British
Steel Corporation’s job creations
subsidiary, BSC (Industry) has
been appointed ind ustri al direc-
tor at the WELSH OFFICE from
June 2.

He succeeds Mr John Jones
who was recently appointed
chairman of the Welsh Water
Authority, after a three-year
secondment to the Welsh Office
from Anglesey Aluminium.

Industrial director at the Welsh
Office is normally a businessman
seconded from the private sec-
tor. The job entails working
alongside Welsh Office eivil
servants on the task of attracting
new industrial projects to Wales;
and encouraging Welsh industry
to grow.

Dr Drisooll was born and edu-
cated in Cardiff and at Birming-
ham University, where he gained
a doctorate in chemical engineer-
ing. e Before joining BSC, he
worked for Joseph Lucas in the
Midlands.

★

Hr Colin Gill has been
appointed managing director of
FA1REY NUCLEAR, a Fairey
Holdings group company. He
joined Fairey Nuclear in 1978 as
works manager.

*

Viscount Arbuthnolt has been
elected deputy chairman of the
court of directors, SCOTTISH
WIDOWS’ FUND AND LIFE
ASSURANCE SOCIETY, in
sn succession to Mr E. E E
Clatterbuck, whose term of

office has expired. Mr Clutter-
buck continues in office as an
ordinary director of the society.
Lord Arbuthnott also becomes,
ex officio, a director and deputy
chairman of the society's sub-
sidiary companies Pensions
Management (SWF), Scottish
Widows Unit Funds and Scottish
Widows Fund Management, in
place of Mr Clutterbuck.

*

ALLIED TEXTLE COM-
PANIES has appointed Hr
Stephen Rendle director of Reid
& Taylor.

*

HENRY WIGFALL & SON has
appointed Mr Thomas Cole as
marketing director, a position he
previously held at Rumbelows.
Another ex-Rumbelows execu-
tive, Sir David Anna!, has been

appointed marketing
Wigfalls.

manager at

SOUTHWEST CONSOLIDATED
RESOURCES has appointed
Mr R. F. Johnston as a director.
He is president of States Petro-
leum Inc., based in Houston,
Texas, which was established as
a subsidiary of Southwest in
1981.

Mr Robert Chapman has been
appointed secretary of the POST
OFFICE rtaff superannuation
fund. He was nominated by the
Post Office, in agreement with
British Telecom, and formally
appointed by the trustees of the
fund. He replaces Mr Frederick
Davis, who retired last month.

THIS ANNOUNCEMENT APPEARS AS A MATTER OF RECORD ONLY

MEXICO, S.A.

Organised under the laws of the United Mexican States

$75,000,000

NOTE PURCHASE FACILITY

MANAGED BY

International Mexican Bank Limited
-INTERMEX-

Samuel Montagu & Co. Limited

Banca del Gottardo Banco de Bilbao S. A.

The Bank of New York Dai-Ichi Kangyo International limited

European Arab Bank Group Intermex International Bank Limited

International Commercial Bank PLC Orion Royal Bank Limited

Svenska Handebbanken SjL

AGENT

Samuel Montagu & Co. Limited

May, 1982

r ' ;T I, *‘ — itim

Financial Tinfcfis^WcdiiBsd ay May. 1 9. j. 9.82

Companies anil Markets

INTERNATIONAL COMPANIES and FINANCE

David LasceUes examines the revised share ratings of bankers in the Lone Star state

Texas bank stars lose their glitter

FOR YEARS, the mere memjon
of Texas banks was enough to
make mouths water on Wail
Street ■ Located in one of the
plum markets in the U.S„
bolstered by soaring oil
revenues, they did terrific
business and raked in some of
the fattest profits in the entire
US banking industry. Any

bank in the Lone Star State
that did not manage to boost
earnings year after year by at
least 30. per cent was not worth
a second glance — notwithstand-
ing the well-known problems of
one of their biggest customers,
Bxaniff International.

Their astonishing perfor-
mance made Texas bank shares
the darlings of the stock
market. Allied Bancshares, one
of the highest fliers, was
trading at $12 at the end of
1$79. By the end of last year,
it’s share price had almost
trebled to $33, a period when
big names an the banking
business, like Bank of America
and Citicorp, reckoned they
were doing well if their share
prices just held steady.

But good times do not last
for ever. Since the beginning
of this year. Texas bank shares
have come tumbling down from
their dizzy peaks. Republic
Bank, the Dallas-based bank
which became a major casualty,
fell by 25 per cent in only
three months.

The sell-off was triggered
mainly by the recent slump in
the oil price which investors
feared would feed through to
the banks because of their
heavy commitment to oil and
gas lending. The topping out
of the boom in the commercial
real estate market — where
Texas banks have also lent
heavily — was another fear. The

combination of these two
cyclical industries was thought
to put the banks in jeopardy.

This sudden twist in their
fortimes has thrown the usually
outgoing Texas bankers onto the
■defensive. Instead of parading,
their assets, they are now
anxious to play down the size
of their ofi and gas loans. And
eves if they are exposed to
energy, so what?

“ When yon look at the alter-
natives, I’d say energy was a
pretty good business to be in,”

that oil will hit $80 and even
$100 a barrel by the end of
the decade.

In calculating how much a
particular oil project is worth,
bankers say they assume that
mi prices will rise by less than
10 per cent a year and that
interest rates wiH average more
titan that. And they only lend
against half the oil in a well.

“ I would say we never even
adjusted up to $35 a barrel.”
said Mr Marc Shapiro, executive
vice-president at Texas Com-

HOW THE BANKS PERFORMED

Earnings

Assets

1981

1980

Increase

1981

$m

$m

%

Sbn

Republic Bank*

Texas Commerce

124

141

92

107

34

32

14*4
14 J

first City

Interfirst

133

172

93

131

44

31

14J

173

Allied Bancshares

63

38

69

4.4

* Previously called Republic of Texas.

said Mr Nat Rogers, president
of First City Ban corporation in
Houston. “ We have about
$3bn in energy loans, but only
one of them is a problem.”
Acwrding to Mr Rogers, First
City began to rein in its energy
lending about 18 months ago
because it suspected that the
oil price would fall. But at
the end of last year, about 40
per cent of its commercial loans
was stall in the energy business.

All the banks; stress that
while loan growth may look
dramatic, they have tried to be
conservative in lending policies,
as their very low loan losses
show. They vigorously deny
reports that they have been
making loans on the assumption

merce Bank, which has about
half its commercial loans in
energy. Mr Shapiro believes
that the price of oil could fall
to $25 without posing serious
problems for his customers and
the bank, though things would
be bad if it fell as low as $20.

Ironically, the biggest corpo-
rate casualty in Texas so far
has bad nothing to do with
energy, or even real estate. The
bankruptcy of Braniff, which is
based at Dallas Airport, was un-
pleasant news, though the banks
had taken the precaution of
writing down their exposure to
the airline.

Texas bankers are touchy
about the popular idea that
their State’s economic fortunes

are inextricably entwined with
those of oil. Other things count
as well, they say, like new tech-
nology industries, a probusi-
ness State Government and a
favourable tax climate.

“ People on Wall Street seem
to think that if the oil price is
declining, this place is going- to
die. That’s simply not the case,
according to Mr Gerald Fronter-
house. president of Republic
Bank. At the end of last year.
Republic had about 20 per cent
of its total loans in energy:
according to bank stock analysts
at Salomon Brothers, this was
the lowest percentage among
the major Texas banks.

Investors' fears about the
fragility of Texas bank profits
were borne out in the first
quarter of this year — though
no t to the extent suggested by
the plummeting share prices.
First City’s earnings were flat,
a nare event in Texas bank-
ing. Other banks turned in
reduced profits growth-— though
by any normal standard, the
pace still looks hot: 16 per cent
at Inter First and Republic, 23
per cent at Texas Commerce and
26 per cent at Allied Bane-
shares.

Although bigger provisions
for loan losses were a factor,
banking results were also '
squeezed by higher funding ,
costs and die impact of the
recession.

Wall Street’s bank analysts
are still fairly bullish on the
Texas banking industry,
though they warn that the
period of sizzling growth may I
now be over. Instead, in
typical Texas fashion, they seem
to be settling for a pace that
would still leave most other
banks standing.

Hewlett

maintains

strong

growth

By Our Financial Staff

Perkin-Elmer
earnings slip

Canadian stockbrokers to merge

BY ROBERT GIBBENS IN MONTREAL

By Our Financial Staff

NINE-MONTH earnings of
Perkin-Elmer, maker of elec-
tronic analytical instruments
and semiconductor processing
equipment, fell from $55.3m to
$41 .9m on sales reduced from
$8I9.2m to $766.9m.

Profits for the third quarter
fell to ?13.5m from $lS.5m on
sales down to $255.8m from
$2S7.9m.

Per share earnings for the
nine months were 97 cents
against $1.28 previously, with
the latest period contributing
31 cents against 42 cents.

THE MERGER announced
j yesterday by two big Canadian
stockbroking firms confirmed
the pressures on profits in the
securities trading industry.

Greensfaieids. one of Canada’s
oldest investment bouses, with
offices in both Montreal and
Toronto, is merging with
Richardson Securities, which is
controlled by the Richardson
family of Winnipeg and Toronto.
Terms of the merger were not
known yesterday nor was the
future of the minority interest
in Greenshields held for several
years by E. F. Hutton, the New

York investment house.

The merger reflects the grow-
ing difficulties in the Canadian
investment industry caused by
depressed conditions in both
bond and equity markets, as well
as by a dearth of underwriting
business. Even the largest
Canadian investment houses
have been showing operating
losses in the past year. Green-
shields was several years ago
among the top six investment
houses in Canada but in the past
two years has dropped to about
tenth or eleventh place.

Richardson is among the top

six and among those best able I
to weather the present storm.
It has a strong presence in
Western Canada where Green-
shields is at its weakest

In the past three years, much
of the stock market investment
interest in Canada has focused
around the Western Canada
energy stocks. The Government's
Energy Program has sparked
off a range of readjustments of
assets by both domestic com-
panies and U.S. groups with
interest in these areas.

SHARPLY HIGHER second
quarter profits are reported by
Hewlett-Packard, the Cali-
fornian electronics group,
fully maintaining the strong
growth registered in the first
three months of fiscal 1981-82.

Group net earnings in-
creased by 34 per cent, from
§7 Dm to $94m, lifting half-
year profits from SI 33m to
S167m. Per share earnings
totalled $L35 for the six
months, against SL09 pre-
viously, with 76 cents against
57 cents coming in the second
quarter.

Sales for the latest period
totalled SL06bn, compared
with $877m for the corres-
ponding 1981 quarter, lifting
the half-year total to $2bn
from $1.64 bn.

Returns for fiscal 1980-81
have been restated for
employee compensated

absences, which red need earn-
ings for the second quarter
ana first half of that year by
$4m or 3 cents a share.
Figures for the current year
reflect tax reductions of 55m
or 4 cents a share for the
second quarter and $10m or
8 cents a share for the half-
year.

Hewlett, which is the
largest manufacturer of elec-
tronic test and measurement
instruments and the second
largest producer of mini-
computers in the US* said
almost all its business
segments contributed to the
half-year improvement.

Prospects for continued
growth look bright The
directors said incoming orders
for the second quarter were
$1.1 bn, up 11 per cent from
the $989m booked in the cor-
responding 1981 period.
Domestic orders totalled
$572m, up 10 per cent from
1981 levels, while inter-
national orders gained 13 per
cent to $530m.

Increase in
Kingdom of
Sweden credit

&

Norsk Hydro
Group results 1981

In millions of

Norwegian kroner

1981

1979/80

Sales and other
operating income

17,482

14,099

- Production costs

13,039

.10,034

Operating profit before
depreciation

4,443

4,065

- Depreciation

1,683

1,604

Operating profit

2,760

2y461

- Financial and
extraordinary items

858

994

Operating profit

1,902

1,467

- Provision for taxation

918

444

Profit after tax

984

1,023

Norwegian Earnings per share!
kroner kmm

A Dividend per share tmm

By Our Euromarkets

Correspondent

INCREASES HAVE been
announced in two large Euro-
credits for European bor-
rowers which both bear
margins over U.S. prime rate
and/or the U.S. rate for
certificates of deposit.

The larger increase Is in
the $500m credit for the
Kingdom of Sweden which
bas now been raised to 5800m
after as much as $9 70m was
made available in the
market.

The credit, which is led by
Chase Manhattan and Morgan
Guaranty is in two tranches,
one bearing a split M per
cent margin over prune and
the other allowing lenders to
44 lock-in ” at 80 basis points
over the average of the CD
bid rate for the first five years
and at 85 points for the fol-
lowing three.

Separately, Chase said yes-
terday that its $2 50m credit
for ENI, Italy’s energy con-
cern. is expected to he raised
to $350m. The credit bears
a margin of 3 per cent for the
first four years and i per eent
thereafter.

The snecess of these opera-
tions testifies to the readiness
of banks to lend money over
U.S. primate rate which can
he more lucrative than lend-
ing over Eurodollar rales.

Additional interest in lend-
ing to European borrowers
may have been generated by
uncertainties surrounding
Latin America at present,
thouch some bankers say it
is too early for such a trend
In be definitely confirmed.

76/7777/7378/7979/80 1981

Highlights

• Oil and gas production in 1981 5.5 million to,e.

• Petroleum exploration costs of 500 million kroner
in 1981, twice the 1980 figure.

Hydro’s oil and gas reserves increased to about
100 million to.e.

Negotiations for purchase of Fisons’ fertilizer
division in progress.

Long term loans reduced by 1,200 million kroner
in 1981.

Increase in share capital of 428 million kroner by
issue of new shares at a price of 1 50 kroner
in ratio 1:5.

(& Norsk Hydro

Copies of the Annual Report can be obtained from:
Norsk Hydro (U.K.) Limited, Hydro House,

49 York Street, Twickenham,

Middlesex 7W 1 3 LN, England-
Or from Norsk Hydro els,

Bygdoy aile 2, Oslo 2, Norway.

First quarter

Revenue

Nb: quoins ..
Net per dmu

NLT COUP.

first quarter

Revenue

Net d wlita

Net per sham

RYAN INSURANCE GROUP

isra

fir&l quarter S

Revenue 47.3m

Hci Dtofi’-s 2 Ini

Net per cluiie ..

K mart profits plummet
desuite increased sales

BY OUR FINANCIAL STAfF

A SUBSTANTIAL setback .in the
first quarter of this year was dis-
closed yesterday by K mart one
of the leading U.S. retailers of
general merchandise.

A rise in sales over the period
indicates that the Troy-based
group’s margins have suffered
more severely than expected
from reduced- demand and Infla-
tion. For the year to January
1982 K mart recorded a fall TO
earnings from $358m to $261ra,
its lowest level since the mtd-
60s.

Net earnings, for the first
quarter have tumbled, from
534.6m or 28 cents a share to
S5.0m or six cents, on sales .of
$3.64bn against $3J7bn- ..

The board said it hoped to
have “more favourable" results'
in the future as a result of
planned changes in all its UJ>.
outlets — which total about 1,900
discount stores, and 356 variety-
stores. 'Hie changes will range
from the -use of -electronic
systems, to 'presentation of
merchandise and the physical
appearances of the stores.

K mart hopes to take advantage
of lire recovery in the U-S.
economy expected in tie second
half of this year.

However, the results for tbe
first quarter cast doubt on Wadi
Street predictions that tbe 1982-
83 fiscal year will bring a
rebound from 1981-82's $L75 a
. share.

, : , Factors affecting the first
.quarter results include a. rise in
the effective tax rate from 41.4
per cent to 46.9 per cent, and
an increase in net interest
charges from $9.3m to $18.5m,
reflecting both higher borrow-
ings and higher interest rates.
There was also a film loss on
currency translation, .compared
with a minor gain in the com-
parable period.

Weak demand, reflecting
higher unemployment and the
continued pressure of interest
rates, cut into' margins, .said
the company. The 8 per cent
rise in sales over the quarter
was less than expected, because
of the bad weather and the
weakness of the economy.

The - results were adjusted
downwards for inflation, ■ -in
accordance with the Department
of Labor's Department Store In-
dex. This took 11 cents off the
earnings total for this year’k
first quarter and 14 cents • of
the comparable period.

K man. expanded its sales
vigorously in the 1970s by aa
aggressive marketing policy Dill
has suffered pressure on profit
margins in recent years . as
economic conditions de-
teriorated.

The stock is a favourite with
investment institutions, which
hold about 56 per cent of the
shares.

Lucky Stores, a diversified
retailer operating about l.fiOO
stores in 33 states, lifted sales
by 9 per cent to $1.84bn in tbe
first quarter of this year. But
earnings tumbled from $20. 1m
to-$15.8m, and share earnings
fell from 48 cents to 31 cents.
Net earnings for the whole of
fiscal 1981-83 were $90. 5 m or
$1.88 a share.

INTERNATIONAL CAPITAL MARKETS

Municipal bond from Ottawa

BY PETER MONTAGWON, EUROMARKETS CORRESPONDENT

THE regional municipality of
Ottawa Carlton is raising $40m
in the Eurobond . market
through a 14} per cent 15-year
issue led by Wood Gundy.

The bonds, which have an
average life of 7.9 years, are
priced at 99 per cent Ottawa
Carlton bas not floated a Euro-
bond since 1975, but its debt
is rated AAA by Moody’s, the
U.S. rating agency.

The issue was the only new.
fixed rate dollar Eurobond
announced yesterday as the

market quietened considerably
ahead of the Association of
International Bond '- Dealers’
annual 'meeting' fo' Venice at
the end of the week.

. On average secondary market
prices were down by about. 1
point But dealers said there
was some professional short-
covering in the afternoon by
traders closing their positions
ahead of the Venice meeting.

In the floating rate note sec-
tor a $30m issue was announced
for the Indian state-owned Bank

of Baroda. The issue bears ia
margin of. i per cent over
. six . month London: . interbank
T offered ‘ fate : (Libor) and
matures in 19S9. Minimum
coupon is 7 per cent-
. Elsewhere,. New Zealand is
raising SwFr ■ 100m- fhrougfi a "
1 0-to-12-year issue led by Union
Bank of Switzerland with an
indicated yield of 6J. Prices
of Swiss Franc foreign bonds
were little changed yesterday,
while D-Mark foreign bonds
shed about { point

FT INTERNATIONAL BOND SERVICE

The hst shows the 2QQ latest international bond issues for which an adequate secondary marker
exists. For further details of these or other bonds see the complete list erf Eurobond prices which
will be published next on Wednesday June 16. Closing prices on May IS

U.S. DOLLAR - ... - Cbairaw -

STRAIGHTS : Jsstmf Bid Offer day wm*- Yrtd

Aetna Lite 15 86/97 ... ISO 101* 1021. -OV -OV 14.Z7

Ama* Jnt. Fin. 16V 92 75 1C3’, 104V O -HP, 15-33

Amex O/S Fin. 14V 89 75 97*, 38 -Oh -O*, 14.77

APS Fm. Co. IP* 89 ... 75 . TO3V 103* -O’* -HP* 1532

Armco O/S Fin. -15V 88 50 100V 100** -OV -ok 15.15

Amex O/S Fin. 1 4** 89 75 97*, 98 -OV -OV 14.77

APS Fm. Co. IP* 89 ... 75 . TO3V 103* -P* -O’* 7532

Armco O/S Fin. -15V 88 50 100V 100** -OV -ok 15.15

ATT 1*V 89 400 TO1’, 101 V -0V-0V 13.84

Baker Int. Fin. 0.0 92 225 1Z7H 28 -P* -O’, 14.02

Bk. Amec. NT SA 12 87 200 92» z 93 -O’* + O’, 14.13

Burroughs Int. 151, 88 50 W, 104V -0* -OV 14.65

Canadair 15*, 87 150 101V 102V -O’, -O’, 1438

Can Net. Rail 14V 91 100 99V TOOV -04 -O’* 14.60

Carolina Power IP, 89 60 104V 104* —01. - 1 1536

CIBC 18 87 100 102>, 103»* -O’. -OV 15.03

Citicorp O/S 15 84/92 100 100*. 100»* -O’. —O’, 14.63

Citicorp O/S IP, 85/97 125 101*, 101*, -P« -0*, 14.78

CNA 15 7 « 97 75 Id 101’a -O’, +0V 15.62

93V KttV -OS -O’* 14.60
1MVKKV-0V-1 1536
102*, 103*4 -p, -(ft 15.03
100*. 100>* -O’. -O’, 14.63
101*, IWV -O’* -04 14.78
101 101*, -O’, +0*4 15.62

Con. lllmoiB 15V 89 ... 100 102*:-. 103V -O’, -OH 15-00

Duke Pm. O/S 15H 89

102V 102V -O’* +0V 14,88

Duoont O/S 14V 88 ... 400 100*, 100V -04 -0V 14.35

Dusont O/S Cap. 0.0 90 300

ECSC 14V 87 50

EIB 15H 89 150

Eksportfinans 14*, 69 ... 50

Gen. Elec. Credit 0.0 92 400
Gan. Elec. Credit 0.0 93 400
Getty Oil Int. 14 89 ... 125

37V 37V -O’* -OV 13-58
99V 99V -OV -OV 14.83
TOl’i 101V “OV -OV 15.06
98V 98V -OV -P* 1435
29V 30** -OV -OV 13.15
26V 26 V 0-1 13.15
98V 99V -OV -P, 14.26

GMAC O/S Fm. 16 88 150 102V 102V -OV -OV 15.28

GWAC O/S 15V 85/97 100
Gulf Canada Lid 14V 92 100

Gulf 0.1 14V 94 176

Gulf Oil Fm. 0 0 92 ... 300
Gulf Slates O/S 16 90 90

Int.-Am. Dv. Bk. 15V 87 55

Japan Airlines 15V 88 50.

Japan Dev. Bk. 1BV 87 50 108*. 104

00 98V 99V — OV -OV 15.59

00 89V 100V +0V -OV 14.70

76 38V 99V -O’, — OV 1439

00 28 28V -1 -OV 13.78

90 100V 101V -OV +0V 15.72

55 100V 100V -OV -OV 14.95

SO . 101V 102V 0 0 14:72

- -OTHER STRAIGHTS - -Mow
Can. Pac. S. 16V 89 C$ 50
Crd. Fancier' 17V 89 C* '30
Hudson Bay 17 89 CS... 40

Montreal 17-89 CS 50

Queb. Hydro IP, 89 CS 50
Qoobsc Pruv. 17 88 CS 50
Simpsons 16V 89 CS ... 40

U. Bk. Nwy 9V 90 EUA 18
Amro Bank 10 87 FI ... 150
Bk. Mess & H. 10 87 H 75

Eurofima 10V 89 F| SO

Pfiif. Lamps IP* 87 FI... TOO

Rabobank 12 88 F| 50

World Bank 10 S7 FI ... 150

OKB 14 86-FFr .. 400

Solway « C. 14V E6 FFr 200 '

Acona 14 85 E 2D

Beneficial 14V 90 £ (O) 20

BNP 13V 91 E IS

C6CA 13V 88 £ 20

Fm. Ex. Cred. 13V 86 £ 15

Gen. Elec- Co. 12V 89 £ 50

Hiram Walker 14V 88 E 25
Privatbankon 14V 88 £ 12

Quobec 15V 87 E 35

Roed (Nd) NV IP* 39 £ 25

Royal Trustee 14 B5 £.. 12

SDR Franco 15V 92 £... 30

Swed. Ex. Cr. 13V 86 £ 20

Eurofima 10V 87 luxFr GOO
EIB 9V 88 LuxFr 600

Change an
- Ititf -•Offer day- weak l
139** 99V 0 0 1

MOO 100V 0 +0«,i
tlOO 100V o -01,1

tiaz wav o o i

t9BV » 0 -IV

fi(w* io 3 v +ov +ov ■

197 97*4 + 0V +0V ■

83V 90V 0 +0V !
99 99V -OV -O' i

9BV 99V -OV -OV

101 101V -ov -ov

101V 102 — OV +OV
106V 107*, +0V +0V
38V 99V “OV -OV
92V 93V 0 +QV
9ZV 93V 0 0

95V 96V+QV+0V
88V 89V +0V +1V
92V 92V 0 +0**
94V 95V -OV +0V
95*, 96V — OV -OV
32*, 33V +0V +0*.
97V 98V +0V +0V
94V 95V 0 +0V

102 103 -OV -1
102V 103V -OV 0

97V 98V +P. +0*,
99*j 100V -O', 0
97V 98V 0 -OV
95V 96V 0 -OV

93V 94V -OV -1

New Brunswick 16V 89 75

OKG IP* 58/97 ’50

Ontnno Hyd. 16 91 <N) 200

+0*, 1430

10P» 105V “OV — OV 14.89
98V 99V +0V +0V 16.08
105V 105V “OV -OV 14.80

Ontario Hydro 14V 89-. 150 101V 101V -OV -OV 14.41

Pac. Gas & El. 15V 89 80
Pac. Gas & SI. 15V. 89 46
J C Penney Gl. 0 0 94 350
Phillips Petrol 14 89 .., 200

103>, 103V -OV -OV 14.80
103V ICO’* — OV — OV 14.63
22V 22V +0V +1 13.49
97 97V -OV -OH 14.®

Oucboc Prow. IP, 89 .. 160 100V 101V -OV -OV 14.93

R.J. Rynlds. O/S 0.0 92 400 27V 28V -OV - IV 13.89
Saskatchewan 16 89 125 104V 104V -O', -OV 14.90

Spain 15»* 87 1» 99V 100 -0»* -H>V 15.79

F LOAT ING RATE

NOTES • * Sproac

Allied Irish 5V~92 O'*

Bdnk of Montreal P* SI OV
Bk. of Tokyo 5V 91 (D! P.
Bk. Nova Scotia P, 93 OV

BPCE 5V 68 OV

BFCE 5V 87 OV

Caissc Hat Tale. 5V SO OV

CCCE 5V 2002 OV

Co-Ban Eurofin 5*- 91... O’*
Credit Agncola P* 97... OV
Credit Lyonnais 5V 97... OV
Credit Nat. P« 94 IP*

■ Spread Bid Offer C.dte C.cpn C.yld
.. OV 38V 98V 15/10 15.69 15.35

51 OV 39 89V 29/10 15V 15.24

W OV 98V 99V 10/8 13V 13.40

93 OV 99V 99V 29/10 15V 15:22

.... OV 99V 99 s . 28/10 15 15.09

. .. OV 99V 99V 27/7 IP* 16,31

90 OV 99V 99V 21/4 15V 15.81

.... OV 98V 98V 11/6 1402 14^9

1.. . OV 3S 99V 14/10 16 .16 12

7.. . OV 99>, 99V 24/S 15.44 1533

7... OV 99V 100 1/10 16 16.04

.... tOV 98V 99*, 9/6 14.69 1407

Stnl^ forcing 15’* 67 ... T 50 100*, 100V 0 -O', 15.55

Danmark; Knpdm. ol 92 0»» J99V 99V 25/8 .15.44 15.52

Sweden 14V 88 150

Swcd. Ex. Cred. IP* 89 TOO
Swcd. Ex. Cred. 0.0 94 200
Transcaneda 1G 89 . . 100

150 88V 97V -OV +0V 1522

TOO 99*. WAV -0*t -0*i 15.21
200 21V 22V 0 — O', 13.62

100 101', 101V -OH -1 15.61

U.S. QUARTERLIES

ANDERSON CLAYTON

1981-82

1980-81

Third quarter

S

S

366.9m

499.2m

Net Diofitc

15.6n>

14.1m

Net par s/urc

1.X

1.13

Nina months

1 31 bn

1 .45bn

Net profile

54 6m

33.4m

Nci per elm ic

4.41

2.64

BRUNSWICK CORP.

1932

1931

First quarter

S

S

Revenue

273.0m

263.8m

Net mohts .... -

3 Km»

8.13m

Nci per chaw

0.20

0.36

( COMBINED INTERNATIONAL i

1382

1381

First quarter

5

S

Revenue

235.4m

197.4m

Nut profir*

21.5m

23.7m

Net per sharp

0.73

0.87

J GERBER PRODUCTS |

Fourth quarter

1381-82

s

1930-81

S

Rcvcrnte

178.8m

172 4m

Net profile

957m

10 9m

1 07

1.22

Year

702.7m

631.0m

Nei pmhte

41 Pm

30 8m

Ner pur sham

4 60

3.46

| BOLLINGER ARGUS !

1983

19B1

First quarter

S

5

Rcwonuo

20.7m

17.7m

Nut prtrfus ...

9.76m

4.88m

Net per s+i>rc

1.66

0.83

Union Carbide 14% 89 150 TOO*, ?W>V -OV — OV ia.ES
Wol's Forgo 1 F.-15S7 75 101** 101V -OV 0 14.»

WMC Fin. IP, 88 SO 98V 99'» -OV -OV 15-72

World Bank IP* 88 ... 250. 101> t .l02 -0** -OV 14.73

Average price charges . On day —O'* on week —O’,

DEUTSCHE MARK
STRAIGHTS

Issued Bid

Asian Dev. Bank 9V 92 150

Australia 9V 91 300

Australia 9V 91 200

Camp. Tel. £sp. 10*i 92 100

Denmark 10 88 100

Den murk 1QV 92 100

EDF y, 92 100

EEC 1CV 93 100

EEC 9V 3* .. 200

EIB 9V 88 60

Ireland 10V 86 100

Mexico 11 88

Nacnl. Financiers 11 90 150

Nat. • Wost. 9V 92 .. .
Nci Zealand 9V .89 . .

OKB 9V 86

Quebec IflV 92

Quebec Hydro 10V 91. .

Ronlo 10 92

Tauernautobahn 9V 94
Venezuela IV,. 31 ......

World Bank 9V 89

World Bank 10 31

Average price changes . . On day

Change on

Offer day week Yield
100V -OV -OV 9 26
104V — OV — OV 8 69
104V -OV —O', 8.65
101V 0 -OV 10.26

102V -OV -IV 9-43 '

102V -OV -IV 9.73
102V 0 0 9.52

104V -OV -O’, 9-55
103 -OV — OV 9.37
103 - 0*. 0 9.18

102V +0V 0 9.40 :

10ZV 0 -OH 10.53

100V -ov -OV 11.01

10P* -rOV -OV 9.00
104H -OH -OH 8.95
103V -OV -OV 9.13
105V +0’v -OV 9.23
104V -OH -1 9.49

100V -OH -OV 10.02
103V 0 -OV 988
101V -O', -0H11J«
102V 0 0 8-36

106V —OV -OV 9.13
-OV on week -OV

Dttn Norsk c Crod. 5V 93 OV

Genfinance P* 32 CP*

Ind. Benk Japan P* 88 OV
Kansalhs Osake P, 32 OV
Lloyds Eitrofin 5V 93 ... 30V

J. P. Morgan SV 97 |0V

Nat. West. Fin. P, 91... §0V

New Zealand 5V 87 OV

Nippon Credit 5V 90 „. OV
Nordic Int. Fin. 5H 91 .. OV
Offshore Mining SV 91 OV

PKbankon 5 91...- OV

Scotland Int. 5V 92 . . OV

Sec. Pacific P* 91 OV

Societc Generate P* 95 OV
Standard Chan. SV 91 OH
Sumitomo Fin 5H ffil 0»,

Sweden P* 89 ‘OV

Toronto Domin'n P* SO OV

97V 98’, 4/6 13.56 13.82
39V 99V 30/8 IP. 15.SS
98V 99V 12/11 14V 14:63
99V 99V 6/11 15.31 15.33
99V 99 s * M/4 17.13 17,24
3SV 99 ’i 12/8 14V 14.75

99V 99V 15/7 15.19 15JS
99*, 100. 7/10 15.56 15.60
99V 99V 10/8 16.06 16.14
98V 99V 6/11 IP, 15.42
98V 99V 2/6 13 13m

89 99*.- 17/6 MV 74,49

98V 99H23/9 15V 15.S1

39 99H24/5 IP. 13.3S

99V 99V 1/9 15.31 15.41
98V 99V 18/5 13.31 13.46
99V 100 9/8 16 16.04

99V 99 s , 26/8 15-31 15.41
99V 99V11/8 16V 16.46

Avenge price changes .On day 0 on week 0

SflH 96V- zv 4.94
99V 101 -3H -5.95 .

SWISS FRANC
STRAIGHTS

Ansou Transport 7H 92
Aucalsa 7V 92

Australia 6* { 9#

Ccc. Nat. TEneryie 7 92 100

CFE-McJiiCO »* 92 .. .. 50

Co-op. Denmark S’* 92 25

Crown Zollrbch. 6V 92 100

D<?nm?fk 7V 91 100

EIB 7V 92 100

rdo-T Elol. do France 7 92 ... TOO

ENEL B. 92

First CitY Fin P- 92. .

Kammunlanc 7V 92 35

Chang* on

Issued Bid Offer day week Yjefd
SO 103V M3V -OV -OV 8.97
80 98V 99V 0 -f-DV 7.83

100 104V 105V +0V +1 5.89

100 102V 10ZV +tft +1V 6.63

50 99V 100V 0 +2»; 8.23

25 106V 108V +0*a +1V 7.43

100 103V 103V +0V +QV 6.28

100 103V I®', +0* 4 +JV 6.72

100 103V 103V +DV +1V 8.74

TOO . 103*, 104 +0H +1V 6.48
44 102 102*| +'1V +0V 7.65

25 105 10P* +0V +1 7.47

35 102 102V 0+1 6.93

CONVERTIBLE Cnv. Cmr. Chg.'

BONOS date price Bid Offer day P/am

Ajinomoto 5*, 96 7/81 933 89V 90V -2V 3.01

Bow Valley inv. B 85 ... 4/8123.12 97 39 0 48.55

Bridgestone Tint SH 96 3/82 470 88V 90V -IV -2.B7

Canon 6V 35 1/81 829 102V 104V -P* '8.17

Daiwa Secs. 5H 96 12/81 513.3 164 66 -1 -3.84

Fuiosu Fenim 4H 36 . 5641 WH S6H -ZV 4.94

Fumkawa Elec. SV 96... 7/81 300 99V 101 -3H -5.95

Hanson O/S ril* 9H 96 8/BT 1.36 187 88 0 -8.10

Hitachi Cable 5V 96. . 2/82 515 92>i 94 -3'« -T.61

Hitachi Cred. Cpn. 5 96 7/81 1612 84*, 86', —2 2.78

Honda Moior 5H 97 - 3/82 . 841 .S9V 91 -2V - 2-16

Indices* 8 95 :.. 2/81 4.55 159V 80V +0V -1885

Kawasaki 5V 98 9/81 229 71*, 73V -IV 2.32

Marui fi 96 7/frt 846.4 105Ht07 -ZV 3.0«

Minolta Camera 5 96.. .10/81 828A 6P* 67V -IV 11 38

Minorco 9V 97 S/82 8.16 186 87>; 0 . 13.71

Mura ia 5V 36 7/81 2168 67 68H -* 14.82

NICK 6*,- 96 7/81 188 - 82H B4 -2V -TO ^7

Nippon Chemi-C. 5 91. .10/81 919 G5** 67V -ZV 9.10

Nippon Electric SV .37— 2/82 -.846 95H 97 -3’, .1.34

Orient Finance P* 97. .. 3/82 12D5 94V 9P* -1H 2.01

- Sar.va Electric 5 96 ... W/81- 652 71V 73V -3V 6.37

Sumitomo Elec 5V 97, 3/82577.3 .-91V 33V -IV —1-09
Sumitomo Met. 96.10/81236.1 70> 71V “IV ».«S

Swiss Bk. Cpn. 6Y90 .. 9/80 191 It 80 — OV ' Z7.64-
Konishiroku 6 90 DM' .. 2/82 585 1 104V 105V “Z>; 189
Mitsubishi H; 6 89 DM 2/82 263 94V 95V -OV 11-23

65V 67V -IV 11 98
186 87>. O 13.71

67 88H -1 14.62

82’.' 94 -ZV -TO .67
G5V 67V -ZV 9.10
95H 97 -SV .1.34
94V 9P* -1H 2.01
71V 73V — 3V 6JX7
81V 93V -IV “1/59
70> 71V “IV ».«S
78 80 — OV Z7.64-

Manitoba 7 92 100 T06 106H O +0V 6.13

Mitsui OSK 6>; 92 .... 100
National Part. Co. 8 95 30

Nmnon T. and T P, 92 100

OKB TV 92 • TOO

Qit. Donauktuli 7 92 .. 100
Ost. PotMpar 7*j 32 . . 100

Philip Morric Pi 92 ... TOO

Quebec 7V 92 100

Sakisui Pro. 5V 92 WW 70
Soc. Lu*. da Cm. 8V 92 80

102V 102V +0*, +1V 6.17
103V 103V -OV +0V 7-46

104 104*2 +0** +0V 6.03
104V TOSH 0 +0*, isn
UR 1 * 103V . 0 +QJ, 6.49
104 104*, +0V +tft 6^8
104H105 +0», +1 • 6.97
105V 106V “OV +0V 6.54
10SV107V 0 +1V 4.83
105V 106V +0V +OV 7.13
98V S8V -4V — BV 7.19

Tronwnna da Pine 7 94 100 98V 9BV — 4V — BV 7.19

Vomriberg Kraft 6V 92 SO 108V 103V +0V +OV 6 24
Atronge price changes . . On day -OV on week +QH

YEN STRAIGHTS
Asian Dev. Bk. SV 91...
Ini. -Amor. Dev. SV 91...
Jiipiin Airlinos 7V 37...

| Now Zealand SV 87 ..

World Bonk 3V 32

J- • - Average price chani

Change on

Issued Bid Offer day week Yield
IS 100Y101V -OV — OV 8.10
15 102V 103V -OV -OV 8-45

a 97V 98*. o —0** 8.4Z
15 100V 101V -OV -QV 8.03
20 100V 101V 0 0 8.25

*" No Tnfannutioa avaiteblo — previous, day’s pt iCA*

\ Only one market maker supplied a price. " .

Straight Bends: The yield m the yield to lOdcmptHJ" of the
mid-prico: the amount issued is in millions of currency
units axeept for Yeo bends srhers. It is. in . .billions..

' Change on week^f Change qwj^-prxe a week earlier.

Floating Rate Note*: Denominated in dollar^ an loss Qtltoh
wise indicated. Coupon shown is minimum. C.d rc
next coopon becomes effective. Spread -MortJm above
Six-month offered rate ff Uiree-month; % above -Oman
rale) lor ti.S. doiFcrs -. Ccpn-“The current coupon.

. - CyidwTho' current yiolrf.

Convertibfo .BOIKfe: Denominated >r> dollar* unless' otfio.'*

. wf«e indtedXAd. Chg. day ■> Change on. day. Cnv: dote-
First dale- for. Conversion into shares Cnv- price*
Nominal amount -of bond -per rhan» expresasd in
currency of share at ctmvarskm rate filled «t
Pf*m «» Pcrcauraoe pumiurn al ’Jit current Bffacl'VO prter
of acquirihn shares via the bond over the most rocort
price of die shores. ■

ic ser

Average price changes:.. Orr day — OV On Week' — OV

O Tile Financial Timet' Ltd.. 13E2. 1 : Reproduction m wneln

■ or m 4 >grt jft. any form uni paftntrie'I . wiihout- written

■ ■^«fnatintT i upplted Jjy JATA ntaina£Bna I.

33

N

Financial 'TinresWednesday May 19 1982

ttawj

sm

rj]~

THIS ANNOUNCEMENT APPEARS AS A MATTER OF RECORD ONE?

THE KINGDOM OF DENMARK
U.S. $1,100,000,000

MEDIUM TERM LOAN

CONSISTING OF

U.S. $800,000,000

U.S. $300,000,000

Fai ME THAN CHS

EURO TRANCHE

LEAD MANAGED BY

CITICORP INTERNATIONAL GROUP

COPENHAGEN HANDELSBANK A/S
PRIVATB ANKEN A/S

B ANKAMERICA INTERNATIONAL GROUP
THE BANK OF TOKYO, LTD.
CONTINENTAL ILLINOIS LIMITED
THE DAI-ICH3 KANGYO BANK, LTD.

THE FIRST NATIONAL BANK OF BOSTON
GULF INTERNATIONAL BANKB.S.C.
LLOYDS BANK INTERNATIONAL LIMITED

MELLON BANK, NJL

THE MITSUI TRUST AND BANKING
COMPANY, LIMITED

THE NIPPON CREDIT BANK, LTD.

ORION ROYAL BANK LIMITED
SECURITY PACIFIC BANK

DENDANSKE BANK AF 1S71 AKTTESELSKAB
R. HENRIQUES JB.

BANK OF NEW SOUTH WALES'

CHASE MERCHANT BANKING GROUP

CROCKER NATIONAL BANK

FIRST NATIONAL BANK IN DALLAS

THE FUJI BANK, LIMITED

IBJ INTERNATIONAL LIMITED

MANUFACTURERS HANOVER
MERCHANT BANKING GROUP

THE MITSUBISHI BANK, LIMITED

MORGAN GUARANTY TRUST COMPANY OF
NEW YORK

NORTH. CAROLINA NATIONAL BANK
THE SANWA BANK, LIMITED
WELLS FARGO LIMITED

MANAGED BY

AMSTERDAM-ROTTERDAM BANK N. V.

B.A.C.-C.O.B. PRIVATE SAVINGS BANK BRUSSELS

BANQU2 DE LTNDOCHINE ET DESUEZ

CONTINENTAL BANK OF CANADA

THE DAIWA BANK, LIMITED

FIRST INTERSTATE BANK OF CALIFORNIA

THE FUJI BANK AND TRUST COMPANY

THE MITSUBISHI TRUST AND BANKING CORPORATION

NATIONAL BANK OF DETROIT

REPUBLIC BANE DALLAS N. A.

THE TAIYO KOBE BANK, LIMITED

TORONTO DOMINION INTERNATIONAL BANK LIMITED

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED
B ANCOHIO NATIONAL BANK

CASSA DI RISPARMIO DELLE PROVINCIE LOMBARDS

CREDIT COMMERCIAL DE FRANCE-NEW YORK BRANCH

EUROPEAN AMERICAN BANK

FIRST NATIONAL BANK OF MINNEAPOLIS

IRVING TRUST COMPANY

THE MITSUI BANK. LIMITED

THE PHILADELPHIA NATIONAL BANK

REPUBLIC NATIONAL BANK OF NEW YORK

TEXAS COMMERCE BANK, N.A.

YAMAICHI INTERNATIONAL (NEDERLAND) N.V.

CO-MANAGED BY

ALLIED IRISH BANKS LIMITED-NEW YORK BRANCH
FIRST PENNSYLVANIA BANK N.A.

GOLDEN STATE SANWA BANK

THE INDUSTRIAL. BANK OP JAPAN TRUST COMPANY
LLOYDS BANK CALIFORNIA
MICHIGAN NATIONAL BANK OF DETROIT

AMERICAN SCANDINAVIAN BANKING CORPORATION

FIRST UNION NATIONAL BANK

HARRIS TRUST AND SAVINGS BANK

ISTmJTO B ANCARIO SAN PAOLO Dr TORINO

MANUFACTURERS NATIONAL BANK OF DETROIT

THE MITSUBISHI BANK OF CALIFORNIA

RAINIER NATIONAL BANK

PROVIDED BY

ALLIED IRISH BANKS LIMITED-CAYMAN ISLANDS BRANCH
AMERICAN NATIONAL BANK AND TRUST OF NEW JERSEY
AMERICAN SECURITY BANK INTERNATIONAL (NASSA U), LI MITED
AUSTRALIA AND NEW ZEALAND BANKING GROUP LOOTED
B ANCOHIO NATIONAL BANK
BANCO TOTTA E A CORES • NEW YORK AGENCY
BANK OF CANTON OF CALIFORNIA
. BANK OF NEW SOUTH WALES
B AN K OF PENNSYLVANIA
BANK OF VIRGINIA

BANQUEDE LTNDOCHINE ET DE SUEZ • NEW YORK BRANCH
CASSA DI RISPARMIO DELLE PROVINCIE LOMBARD E-
LONDON BRANCH
CITIBANK. N. A.

CONTINENTAL BANK OF CANADA

CREDIT COMMERCIAL DE FRANCE -NEW YORK BRANCH
THE DAI-ICH1 KANGYO BANK. LTD.

DEN DANSKE PROVINSBANK -NEW YORK BRANCH
EQUIBANK-PHTSBURGH P A
EUROPEAN AMERICAN BANK
FIRST EASTERN BANK. N.A.

FIRST INTERSTATE BANK OP CALIFORNIA

FIRST NATIONAL BANK IN DALLAS

THE FIRST NATIONAL BANK OF BOSTON

THE FIRST NATIONAL BANK OF PENNSYLVANIA

1 ST SOURCE BANK - SOUTH BEND INDIANA

THE FUJI BANK. LIMITED

GOLDEN STATE SANWA BANK

HA RRIS TR UST AND SAVINGS BANK

THE INDUSTRIAL BANK OF JAPAN. LIMITED

I NDUSTRLA L N ATION AL BANK OP RHODE ISLAND

1ST1TUTO BANCARIO SAN PAOLO DI TORINO

LLOYDS BANK CALIFORNIA

MANUFACTURERS HANOVER TRUST COMPANY

MELLON BANK. N.A.

"MIDLANTIC NATION AL BANK

THE MITSUBISHI 3 A NX OF CALIFORNIA

THE MITSUI BANK. LIMITED

MORGAN GUARANTY TRUST COMPANY OF NEW YORK
NATIONAL BANK OF DETROIT
THE NIPPON CREDIT BANK. LTD.

NORTH CA ROUN A NATIONAL BANK
OLD KENT BANK AND TRUST COMPANY
PENNBANK

PITTSBURGH NATIONAL BANK
RA\ N1EP. NATION AL BANK
REPUBLIC BANK DALLAS N.A.

THE ROYAL BANK AND TRUST CO.

SCANDINAVIAN BANK LIMITED
SHAWM UT 3 AKK OF BOSTON. N.A.

THE SUMITOMO BANK OF CA UFORN1 A - N ASSAD BRANCH
TEXAS COMMERCK BANK. N.A.

TRADE DEVELOPMENT BANK OVERSEAS INC.

UNITED PENN RANK
WELLS FARGO BANK. N.A.

AMERICAN FLETCHER NATIONAL BANK AND TRUST COMPANY
AMERICAN SCAN DINAV IAN BANKING CORPORATION
AMSTERDAM -ROTTERDAM BANK N.V.

B. A.C.-C.O-B. PRIVATE SAVINGS BANK BRUSSELS

BANCO PORTOGUES DO ATLANTIC© - NEW YORK AGENCY

BANK OF AMERICA NT * SA

BANK OF HAWAII

THE BANK OF NEW YORK

THE BANK OF TOKYO. LTD.

BANKERS TRUST COMPANY -DBS MOINES. IOWA
THE BOATMEN'S NATIONAL BANK OP ST. LOUIS
THE CHASE MANHATTAN BANK. N.A.

CITIZENS FIDELITY BANK & TRUST COMPANY

CONTINENTAL ILLINOIS NATIONALBANK

AND TRUST COMPANY OP CHICAGO

CROCKER NATION AL BANK

THE DAIWA BANK. LIMITED

THE DETROIT BANK AND TRUST COMPANY

THE EQUITABLE TRUST COMPANY

FIDELITY UNION BANK

FIRST HAWAIIAN BANK

FIRST JERSEY NATIONAL BANK

FIRST NATIONALBANK OF ATLANTA

FIRST NATIONAL BANK OF MINNEAPOLIS

FIRST PENNSYLVANIA BANK N.A.

FIRST UNION NATIONAL BANK
THE FUJI BANK AND TRUST COMPANY
GULF INTERNATIONAL BANK B.S.C.

HARTFORD NATIONAL BANK AND TRUST CO.

THE INDUSTRIAL BANK OF JAPAN TRUST COMPANY
IRVING TRUST COMPANY
LINCOLN FIRST BANK N.A.

LLOYDS BANK INTERNATIONAL LIMITED
MANUFACTURERS NATIONALBANK OF DETROIT
'MICHIGAN NATIONALBANK OF DETROIT
THE MITSUBISHI BANK. LIMITED

THE MITSUBISHI TRUST AND BANKING CORPORATION
THE MITSUI TRUST AND BANKING COMPANY. LIMITED
THE NATIONAL BANK OF AUSTRALASIA LIMITED
NEW ENGLAND MERCHANTS NATIONAL BANK
NORDIC AMERICAN BANKING CO RPO RATION-
OAK PARK TRUST & SAVINGS BANK- OAK PARK. ILLINOIS
OLD NATIONAL BANK OF WASH! NGTON
THE PHILADELPHIA NATIONAL BANK
PRIVATB ANKEN A,S- GRAND CAYMAN BRANCH
RBC FINANCE B.V.

REPUBLIC NATIONAL BANK OF NEW YORK
THE SANWA BANK. LIMITED
SECURITY PACIFIC NATIONAL BANK „

SKANDINAVTSKA ENSKILDA B ANKEN INTERNATIONAL CORPORATION

THE TAIYO KOBE BANK. LIMITED

TORONTO DOMINION BANK

UBAFARAB AMERICAN B ANK

VIRGINIA NATIONAL BANK

YAMAICHI INTERNATIONAL (NEDERLAND) N.V.

CITICORP INTERNATIONAL BANK LIMITED

April a issa

rfl uci - Brussels
LU 1981

The following statement by Mr. A* JAUMOTTE, Chairman, serves as an introduction to the
Directors' report The Shareholders’ General Meeting will be . held on the 8th June 1983.

In 1BS1 the chemical industry was severely
affected by the general recession. Companies
bad to face excessive wage and salary costs,
social and financial charges and taxes,
especially in Belgium, whilst telling prices
were depressed due to weak demand.

Despite this unfavourable climate, the net
sales of the UCB Group rose by 11% to reach
BF25.471 million in 19SL compared with
BF22,994 million in J9S0. and Group net
profit after tax amounted to BF257 million,
compared with BF219 million in 3980.

In the Chemical Sector sales turnover rose
sharply due to the increase in the cost of
raw materials, particularly petrochemicals.
The Sector has again become slightly profit-
able, following major capital expenditure
undertaken over several years.

The expansion of the Pharmaceutical
Sector continues steadily. Tbe pace is,
however, slower than in 19S0, due to the
policy of the Belgian Government on prices
and on the reimbursement of pharmaceutical
specialities, which directly affects the profit-
ability of the Sector.

The Film Sector has had a particularly
difficult year, due to the intense competition
in the market it serves, where excessive
capacity has led to price- levels being too'
low. It made a significant loss this year due.
amongst other things, to the cost of
continuing structural changes involving a
further reduction in numbers employed and
an adaptation of capacities. Tbe increase
in sales figures has, moreover, remained
below the increase in production costs.

The net profit after tax of UCB S.A-
amounted to BF357 million in 39S1. leaving
a profit of BF229 million after the transfer
of exceptional profits of BF12S million to
tax exempt reserves.

The fact that both the Group and UCB S.A.
made profits despite the unfavourable
economic situation, demonstrates UCB's
improved capacity for resistance in a period
of crisis. It is the benefit of the policy
pursued for many years, which has involved

numerous measures to rationalise manage-
ment and production in each Sector, whilst
at the same time investing in selected capital
projects to improve the Group’s competitive
position. Our expansion into markets outside
western Europe, which are less affected by
the recession, has also produced its first
results.

On the 21st February, 1982, the Belgian
Government took various measures- designed
to improve the competitiveness of companies.
During I9S2 and 1983 these should increas-
ingly have a positive effect on the results
of UCB S.A. and the other Belgian companies
in the Group.

Among these we should note the temporary
modification of tbe automatic link between
wages and salaries and the retail price index.
The indexation system practised in Belgium
up to now, together with tbe significant
inflation which we have suffered, has, even
in 1981, led to an increase in wage and salary
costs which has been too rapid, even though
it was lower than that of 1980. It is essential
that the reduction in the growth of wage
and salary costs continues even further in
Belgium, so as to bring them back to the
level of our European competitors, which is
already higher than that in the United States
of America and in Japan, or in the reft of
the world. We should also note the alteration
in the Belgian franc within the European
monetary system, the devaluation of S}%
should benefit tbe UCB Group, considering
that most of its production takes place in
Belgium, that it includes a considerable
added value and that it is largely destined
for export.

The Board approved last December an
investment programme for 1982 which
amounted to BF978 million for the whole
Group.

We believe that the combination of our
efforts in investment, in expansion and in
tight management at Group level, and of the
Belgian Governmental measures referred to
above, will allow us to continue our policy
of expansion.

BRIEF SURVEY OF UCB GROUP

In BF and £ sterling million (mo)

BF

£

BF

£

BF

£

Group net sales

20,396

326.9

22,994

304.0

25,471

346.0

Numbers employed at 31st
December

(+15%)

8,349

(+1396)

8,106

.(+1156)

7,797

Own funds"

4.476

71.8

4,554

60.2

4,582

66.3

Cash flow*"

1512

21.0

1.139

15.1

1.231

16.7

Value added**"

Capital expenditure during

7,548

121.0

8,196

108.4

8,731

118.6

the year

615

9.8

1,118

14.8

1.151

15.6

Research expenditure

575

9.2

640

8.5

695

9.4

Finance and loan charges

344

5.5

394

5.2

572

7.8

Taxation

' 141

22

126

1.7

63

02

Profit after tax

Profit after tax as a %

330

5.3

219

2.9

257

32

of own funds

Share of UCB

In own funds'""** 2,787

In cash flow 1,093

In profit after tax ... 271

Price range of UCB &A.'s

share 1,530-1,156 29.3-

Number of shares in UCB

S-A. at 31st December 1,099,360

In BF and £ Sterling per share

29.3-182

1,533-970 202
1,113,326

202-12. 8 1,510-948 202-12.9

1,1 13,326

* Own funds include outside interests, subordinated loan ( s) and investment grants.

■** Cash flow is made up of: depreciation, subventions received, increase or decrease
in provisions for risks and charges, and profit after tax:

•*• Added value is made up of: wages, salaries and social charges, depreciation, financial
charges, tax and net profit

**** Own funds do not include outside interests and subordinated loan(s).

Rates of exchange used: 1979 £1=BF 62J7 1980 £1=BF 75.63 19S1 £L=BF 73-61

Copies of the 1981- Annual Report (in English, French or Dutch) can be
. .... obtained on request from:

UCB SA, Public Relations Dept, Avenue Louise 326 BTE 7
B-1050 Brussels (Belgium). Tel: (010) 322 641 14 11. Telex: 21 280.

Tfds axrmaicanaa appears as atneaer cf record only.

Merchant Bank of

Centred Africa Limited

Registered Accepting House

Zimbabwe

£4,000,000

General Purpose Lines of Credit
With the Fundingand Payment Guarantee of die
Export Credits Guarantee Department

Arranged and Managed by

Hill Samuel & Co. Limited

Providedhy

Hill Samuel & Co. Limited
and

N. M. Rothschild & Sons limited ■

April 1982

Companies and Markets

. ; Fin^dal'TImes-Wetosday Mayiai982

INTt. COMPANIES &

French car makers set to retake markets

A RECORD trade surplus of
FFr 2S.2bn (54-7bn) in 1979.
followed by a fell to FFr 26bn
in 1980 and a further slide tn
FFr 24.3bn last year, tells the
gloomy tale of the French
motor industry following the
second oil crisis. The great
cash cow of France’s exporting
industries is no longer the
animal it used to be.

In the palmy days of the last
decade, the Government grew
to rely consistently on France’s
vehicle and component pro-
ducers to generate a steadily
increasing surplus of overseas
trading profits. Exporters built
up their business to about 14
per cent. of the country’s total
; foreign sales. Car Imports, on
the other hand, were held at
around 22 per cent by the
strength of the French-owned
distribution networks and the
rigidJy-adminretered 3 per cent
market ceiling on Japanese
cars.

This happy situation has
been turned inside nut in the
last two years. On the export-
ing side, French manufac-
ture rshave suffered in some of
their major markets, particu-
larly West Germany, where car
sales fell from 263,000 in 1979
to 200,000 last year. At home,
imports leapt from 437,000 twn
years ago to 517,000 in 1981,
thus helping reduce the trade
surplus in real terms, to the
level of 1974. Measured in
constant 1970 francs, the
surplus fell from FFr 12.Sbn
three years ago to FFr 8.5bn
last year.

On the face of it. this sudden
slippage looks like a dear
illustration of many of the
things that the recently-elected
Socialist administration claims
to be wrong with French

industry. Since sales overseas
are failing, the argument goes,
French products must be
becoming uncompetitive, and
action Is needed to make them
more competitive. In France
itself, imports must be driven
back and the domestic market
■'reconquered”— again through
improving the quality of
French products.

From' the motor industry's
point of view, however, the
reasons for the setback are
much more complex. One
crippling factor on the volume
oF both exports and imports
was the overvaluation of the
franc during the 1986-81 period
— a factor which helped turn a
34,000-car surplus with West
Germany into a 100,000 unit
deficit last year. Even after the
devaluation against the D-mark
last October, the industry is not
convinced that the divergence
between high French Inflation
and the moderate German rate
has been adequately covered.

But the currency problem
turned out to be only the thin
end of a much larger wedge
that has split open the shape
of the French motor industry
in a way that is likely to be
irreversible. The more long-
term structural problem was
caused by the break-up of tbe
Talbot franchise in France.
This reorganisation, provided
the opportunity for foreign
companies — mainly West
Germany's Volkswagen and
Ford — to pick up good new
dealerships in France for the
first time in years.

The Talbot restructuring— its
dealerships have now been
merged with those of Peugeot,
its parent company — has prob-
ably cost the French industry a
permanent 4 to 5 per cent of its

domestic market. Few analysts
expect car imports to settle at
the 30 per cent they reached at
the high point last year. But
even allowing for some decline
to, say, between 26 and 27 per
cent, France’s producers and
dependent component com-
panies have still lost a sizeable
tied market..

While these clouds have
gathered over the French indus-
try, however, the manufacturers

AFTER several years of
competitive squeeze, the
French motor industry is
fighting back hard
through a major drive
aimed at increasing pro-
ductivity. Terry Dods-
worth reports

have not been idle. The most
striking evidence that the
industry is not slipping into a
cycle of declining competitivity
lies in its record of change and
investment. An enormous effort
has gone into the modernisation
of the production . apparatus
over the past two years, most-of
it centred on a drive for higher
productivity. ■

• ' First the industry has
quietly, but insistently, begun
to slim its workforce. Job cuts
in car and component companies
are reckoned to amount to
between. 30,000 and 40.000 over
1980-81, a dramatic tumround
from the steady creation of new
employment in the post-war
period.

• Secondly, companies have
begun to explore and introduce
Japanese-type methods of work
enrichment. Both Peugeot and
Citroen, for example, have gone
heavily into quality as a means
of improving their products.

New factories are being de-
.signedwiththe emphasis- on up-
grading the level' of skill,
reducing the mechanical, repeti-
tive production line jobs, and
fostering responsibility. At a
recently-opened . gearbox plant
in Valenciennes, Peugeot has set
a target standard of zero fault
production of the type practiced ;
in Japan.

• Thirdly, new investment is
being pumped into high . level
automation and robot projects.
In this context, the industry
has maintained its reputation
for- being in the vanguard of
French innovation. Very few.

. of ' France’s 800 or so robots
are ’ used outside the 'motor.'
industry. Renault has forged
the reputation of being the
countiy*s principal robot
designer and manufacturer.
From the development of weld-
ing .and painting robots, the’
company is now moving into
the robotisation of the much
more complex handling and-r
assembly processes.
m Parallel to the robot
developments, the motor
industry is- taking the lead in
the design of flexible factories..-
-The most advanced of these has
recently been opened by
Renault Vehicules -Industrlels,
the truck division of Renault,
for the machining of a range
of heavy gearbox cases.

In this plant, parts are
carried around various pro-
cesses on compnter-controlled
trollies, to be machined on com-
puterised tools in an order that
is ' also commanded by com-
puter. Apart from the entirely
automatic methods of machin-
ing, the outstanding feature of
this plant is the; complete
variability of the order in
which parts are moved from

tool to took The idea Is to
pare down stock-holding to the :
absolute, minimum. .

Similarly, flexible production
methods have also been intro-
duced. by Jaeger, the dashboard
manufacturer.- Here, the idea
was to create lines that were
capable of dealing with a mix
of similar products, using’
machines that can recognise,
differences in -the part to be
processed!,

• Finally, the French industry
has stepped up its investment
in research and development.
The pressure'- to develop more
fuel efficient cars has led to a
more concerted national effort,
with ; growing ccwaperatioh
between toe manufacturers and
expanding links with university
research departments. Expendi-
ture on. R and D— more than
doubled between 1975. and 1979,
rising . from FFr- L6bn to
FFr 3.5hn, according to a. study
by the manufacturers’ associa-
tion. _ ;

The overall effect of this
range of- investments has been
to endow the French industry
with relatively modem produc-
tion lines and uprto-date
vehicles. ’ Most companies accept
that the Japanese are still ahead
in some areas, notably in em-
ployee management and in their
methods of extremely, rapid
stock turnover. •

But French companies argue
that, on a technical level; they
have toe answer to virtually
.anything- that the other Euro-
peans can throw at them. “I
went to see Volkswagen
recently;’ says a French
manager,. u anrt there was noth-
ing they were doing more
efficiently than, we are. They
only won’ last year because of
the currency advantage."

jtrofli

Just

lb

7'

011

■y ■

Belgian zinc
smelters
plan merger

By Giles Merritt in Brussels

Akzo makes slow start to 1982 I- ^ #*??.

BY WALTER ELLIS IN AMSTERDAM

BELGIUM'S TWO foremost zinc
smelters and producers, Vieille-
Montagne and Compagnie
Royale Astnrienne des Mines,
are shortly expected to announce
the details of a merger aimed
at streamlining their operations.

Both companies are already
linked, in effect through Societe
Generate de Belgique which has
a 28 per cent stake in VielUe-
I Montague and 26 per cent of
Asturienne.

The proposed merger has been
expected since last year’s 'major
i financial move by SGB, in which
I it absorbed and reconstituted its
Union Miniere mining subsidiary
with the aim of using it to head
a new vertically structured non-
ferrous metals group inside
SGB.

The talks announced yesterday
by SGB between the manage-
ments of Vieille-Montagn'e and
Asturienne are understood to
centre largely on the rationalisa-
tions that their merger would
yield.

Vieille-Montagne, which is the
world's largest zinc refiner, has
not paid a dividend since 1977
and currently has accumulated
losses of more than BFr 2bn
($46ra).

Asturienne announced re-
cently that, after eight years of
persistent crisis in the European
rinc industry it has achieved a
BFr 133.7m profit for 19S1,
reducing its accumulated deficit
to BFr 2.7bn.

AKZO, the Dutch chemicals and
fibres group, reports a disap-
pointing start to 1982, with a net
income for the first quarter of
Fl 26m ($10m) compared with.
Fl 29m in the same period last

Mr A. G. Van Den Bos. toe
! outgoing president of the board
of management, told the annual
meeting that a similar result
for 1982 as a whole could be
expected unless the world
economy showed real signs of
recovery.

Sales during the three months
rose by 5 per cent to Fl 3-lTbn,
but much of the increase was
accounted for by price rises.
Man-made fibres rales rose “only

modestly” with much of toe
problem being caused by-
reduced demand for the products
of American Enka.

Operating ' income, at
FI 126.7m, was almost 11 per
cent up on the first three months
of 1981, but this is described
as “ absolutely ' inadequate."
After interest payments, sub-
stantial losses were suffered in
toe man-made fibres division. A
fail in sates of chemical pro-
ducts by Akzo Zout Chemie Is
also causing continuing
concern. Heavy demand for de-
icing salt in toe U.S. as a result
of severe winter weather was
one bright spot during the early

months of the year.

Shareholders backed the pro-
posal oE the board to pay a
dividend for 1981 of Fl 2 per
share.

Mr Vair Den Bos said yester-
day that he expected modest
economic growth only in the
years after 1982. “Because of
this and .because of the con-
tinuing development of new:
industrial nations, competition
will remain firce.”

The principal -element 7 of
group strategy continues to be
further improvement of product
mix and the reinfocement of the
competitive position in what it
descibes as core. activities-: . •:

ahead at
four months

By Our Finandar Staff '

lu'ontiR'J

DSM shows strong advance

BY OUR AMSTERDAM CORRESPONDENT

DSM, toe Dutch chemicals and
resource group, yesterday
reported a 75 per cent increase
in net income for 1981 to
Fl 101m ($40m) on sales total-
ling FI 1.83bn, 23 per cent up
compared with 1980, Dr Wim
Bogers. the president, however,
described toe profit as “ mudh
too low" in view of toe sub-
stantially higher turnover.

DSM believes that the
economic situation in Western
Europe could improve this year
if interest rates fall further. It
seonis demand for chemical

products growing in volume
terms by about 2 per cent this
year.

The company does not foresee
much early improvement in the
fertiliser division In Europe end
expects market sales elsewhere
to be below the level of 1981;
It is hoping for an improvement
in fibre feedstocks but expects
any improvement In petro-
chemicals to come only in the
second half of this year.

Last year's increase in sales
was attributed almost entirely

to higher prices, - with the
actual volume little changed bn
1980. However, the development
of sales by DSM over the last
five years has been slightly
better than for the European
chemicals sector as a whole,
and the company is not
despondent about the longer-
term trend.

The bulk of the group's
production activities— about 86
per cent of the total — continued
to be in the Netherlands, but
about 64 per cent of sales were
abroad.

OPERATING earnings for
Deutsche Bank were up 20 pgr
cent in the first four months of
1982 on an improving interest
margin, shareholders were told
at the annual meeting. The bank
. said it was too .early to forecast
net consolidated earnings for the
year, but added that toe 19S2
dividend would not disappoint
shareholders. /

Although toe bank's interest
margin had developed favour-
ably so fat. it raw Increased
risks exerting pressure , on toe
| interest spreads liter in the
year. The bank had used aerat-
ing income to strengthen its risk
reserve as a precaution against
write-offs on domestic and in-
ternational loans;' , .

This buffer lies In the interest
of the shareholder — ** even if
everyone would like to see ah
even ■ higher dividend.” - Last,
year Deutsche Bank paid an un-
changed DM 10 ($4.30) per
share,.

• BASF, the West German
chemicals company, has sold its
50 per cent interest in Disper-
sions Plastiques of France, to its
French partner in toe Joint
plastics undertaking. Pechiney
Ugine Knhlmann (PCUK).

BASF said both partners
recognised a need to restructure
Dispersions Kastiques to cope
with difficult market conditions.
It added that it would continue
to supply speciality products to
the plastics company.

Tiiis aijicimcancra appears. as a matter of record only.

VW in commercial vehicle
deal with Austrian group

BY KEVIN DONE IN FRANKFURT

MerckantBankaf
Central Africa Limited

Registered Accepting House

■Zimbabwe

XJS%5ipoopoo

Revolving Export Finance Facility

VOLKSWAGEN, West Ger-
I many's leading motor group, is
| to enter the market for four-
wheel drive commercial veliicles
through a joint venture with
Steyr-Daimler-Puch of Austria.

Steyr is to develop and
assemble four-wheel drive light
commercial vehicles based on
the VW-Type 2 Transporter. VW
will provide- most components
and body parts in kit form from
its Hanover works while Steyr
will supply toe four-wheel drive
transmissions and associated
parts.

The vehicles — vans and tight
buses — will be assembled at
Steyr's Graz works in Austria.

Production, which is expected
to begin at the latest by October
1984, will build up to 10,000
units a year. The initial five-rear
production contract will run to
the end of 1989.

Sales of the new vehicles will,
be undertaken alone by VW,
which Is aiming at opening up a
new market for four-wheel drive
vehicles, particularly in the
Alpine countries.

Steyr is already involved in a
deal with Daimler-Benz of West
Germany for the production of
four-wheel drive cross-country
vehicles which compete directly
with toe BL Range Rover.

Following problems between
the two partners, the deal was
modified last year with Daimler-
Benz taking complete control of
product development ■ and sales
in toe most important markets.
Production of the Daimler-Benz
four-wheel drive vehicle is now
carried oat by Steyr on a fee
basis.

Steyr will also provide four-
wheel drive. units for 1 the Fiat
Panda saloon. .

Arranged and Managed by

N. M. Rothschild & Sons Limited

Bank Brussels Lambert (UK) Limited

Diesdner Bank Aktiengesellschaft

Banque Nationale de Paris pic
Hill Samuel & Co. Limited

Italtel plunges L269bn
into the red at year-end

BY JAMES BUXTON IN ROME

Provided by the London offices of

Bank Brussels Lambert (UK} Limited
Banque Fran^aise de Credit International Limited
Bayerisdie Hypetheken-und Wechsd-Bank AG
Chemical Bank

Drsdner Bonk Aktiengesellschaft
Manufacturers Hanover Trust Company

Banque Fran^aise du Co mm erce E x teri e ur
Banque Nationale dc Paris pic
The Chase Manhattan Bank} NA
Continental Illinois National Bank and
. Trust Company of .Chicago
Hill Samuel & Co. Limited

ITALTEL, the Italian state-
owned’ company whichbasTjbout'
two-thirds of the national mar-
ket for telephones and exchange
equipment, has announced a
loss for 1931 of ,L288Shn
($2l0nJ) on sales . 40 'per cent-
higher at L7Q3.Sbn.

N. AL Rothschild & Sons Limited

Agents

K. JVL Rothschild & Sons limited
and

Hill Samuel & Co. Limited

’April 1982

Jtaltel had an operating loss
for toe year of L189.9bn, on top
of which : were extraordinary
losses ot L7&abn. In 1980 the.
company technically broke even,
thanks to L232.7bn of capital
gains on the sale of subsidiaries'
to' cover operating losses.

Some L14S.4bn of the 3981
loss was due to debt Servians,
charges which rose 25 per- cent
to equal 21 per cent of turnover.
The extraordinary losses were
mainly due to . stock and
indemnity losses at: a Brazilian.'
.subsidiary.; .... - r •.

Italtel's problems , are due to
overinvestment in outdated tele-
phone exchange technology in
toe 1970s, slowness In. develop-
ing an electronic exchange and
to low labour productivity. The
company is now. in -the second
year of a five-year recovery
programme and recently signed
a co-operation agreement with
General Telephone and Elec-
tronics (GTE) .of - the UiL, for
the . . joint development of
electronic switching systems, as
well .as, other co-operation
agreements.

- Last year productivity and
turnover per head increased and
.toe labour force was reduced fcy
nearly 2,500 workers to 26,250-
Some 2.000 of .those were
engaged; in. research oa which
-rame L76bn wpe spent in .lSSL

; >.

» ... r

•;i \t!iE

V *> •

im qrot

-.u’-iW'

Khandial Times Wednesday May 19 1982 ..

- *«,• INTL: COMPANIES & FINANCE

S5

Strong demand from car

By YOKO SHZBATA IN TOKYO

NTN TOYO BEARING, Japan’s
second largest bearing manufac-
ture r, 'posted record.' parent
company earnings in the year
ended March. The . result , is
attributed to growing demand
for constant velocity joints for
Japanese front-wheel-drive cars
.and small bedrlngs for video
tape recorders and office auto-
mation equipment, ■ ■

Operating profits advanced by
32.6 per cent to Y14.G6bu
fS60m). Net • profits were
Y7.45hn, up 37.3 per cent, and
sales ^reached 189.75bn; ahead
by 6.5 per cent. Profits ‘per
share were Y27.42, compared
with Y22BS, and the dividend
total is raised by Y1 to Y7.

Sales of car parts rose by
10 per cent to account for 30
per cent of the total, thanks

to strong sales of constant velo-
city joints to Ford Motor of toe
U.S. Constant velocity joints
are used in front-whele-drive
cars, and Toyo Bearing supplies
60 per cent of Japanese market
under a production licence
from GKN of the UK.

Sales of constant velocity
joints totalled Y40hn, compared
with Y35bn in 1980-81. Bales
to Ford Motor accounted' for
Y3.7bn up by 68 per cent.

The company has plants', in
Germany, the UK and the U.S;,
but exports from Japan were
still active, rising by 11 per
cent to account for 24 per cent
of total turnover.

The favourable effects of the
yen’s depreciation against ,the
UjS. dollar, however, were, can-
celled out by the effects of the

yens appreciation against Euro-
pean. currencies such as the
remark and sterling, the com-
pany said.

The company expects sales of
constant velocity joints to
expand to Y44bn in the current
. year, thanks to the Japanese
car manufacturers' shift toward
front wheel drive cars. They
. tot* a 22 per cent share of total
output in 1980 against 113 per
-cent in 1977. New demand for
bearings for industrial robots
and office automation equipment
-is also expected.

As ■ a result.' full year un-
■ consolidated sales are expected
to increase by 7 per cent to
Y203bn. Operating profits are
projected at Yl5bn, up by 7 per
cent and net profits at Y7.6bn,
np by 2 per cent. ,

Makino Milling Machine ahead

BY OUR TOKYO STAFF

MAKINO MiHrng Machine, a
major Japanese machine-tool
maker, has reported buoyant
unconsolidated eanwngs for the
year ended March, (thanks to
conitinued- brisk demand for
nrarhftmiog centres and strong
overseas sates.

Operating profits rose by 28.3
pear cent to Y632bn (526.9m,)
and net profits by 23 per cent
to Y&2bn on sates of YSS.Sbn,
up 31 J5 per cent.

Profits per share improved

from Y49J57 to Y50.04 and the
dividend total is Y10. Last year's
total was Y9 and the company
also paid a commemorative divi-
dend of YI.

Sales of machining centres
expanded by 833 per cent to
account for 30 per cent of the
total and exports rose by 50J.
per cent to account for 29.5 per
cent.

However, . the sluggish
economies of the U.S. and
Europe affected the company's
order book in the year. New

export orders fell 22 per cent
to-Y839bn leaving total orders
down 2.6 per cent at Y36.9hn.
The order backlog totalled
Y29.1bn at the year-end, up US
per cent from a year earlier
The company expects con-
tinued sluggishness in export
markets in tile current year and
total orders received are fore-
cast io fall' to Y33bn, Operating
profits are projected at Y7bn,
up 11 per cent, net profits at
Y3.4bn, up 6 per cent and sales
at Y40bn, up 12 per cent.

Toyota and
GM continue
discussions

By Richard C Hanson in Tokyo

GENERAL MOTORS and
Toyota Motor officials this week
began a second round of work-
ing level talks on their plans
io jointly produce a' small
passenger car in the U.S.

.• A 30-member team from GM.
foil owing a similar mission in
mid-April, is expected to tackle
a .broad range of topics, includ-
ing the selection of an appro-
priate model,

The first and second ranked
car producers in the world
opened discussions on the pro-
ject- earlier this year. .GM
already has strong links hi
Japan to Isuzu Motor, a lead-
ing trade maker, and Suzuki
Motor a top maker of motor-
cycles and minlcars-
Toypta failed last, year .to
reach an agreement on joint
production in the U.S. with
America's second largest car
company. Ford Motor.

Australian-Japanese team
in Malaysian smelter talks

BY WONG SULONG IN KUALA LUMPUR

AN AUSTRALIAN-JAPANESE
team is in Malaysia for talks
on, the possibility of setting' up
an aluminium smelter using the
country's vast untapped hydro-
electric power.

The team is being led by Sir
Russel Medigan; deputy chair-
man of Conzinc Rio Tinto of
Australia (CRA), and Ur S.
Ikeda, head of Sumitomo
Aluminium Smelting Company.

Hie visit is taking place
against the background of
closures of aluminium plants in
Japan and the postponement in
several aluminium projects , in
Australia due to the recession
and energy costs.

The CRA-Sumitomo team is
interested in a smelter in the
East Malaysian state of Sara-
wak, using the' hydro-electric
potential . of its rivers. In

.particular, toe Bajang and its
tributaries.

The discussions are in their
preliminary stage, but it is
believed tee partners are
interested in a smelter with an
annual capacity of more than

200.000 tonnes,

Malaysian officials are of two
minds over the project. Some
argue that there is a need for
a major energy-user project to
. act as a catalyst for the develop-
ment of the hydro power In
Sarawak, while another group
feels Malaysia would simply be
subsidising the project if energy
is sold cheaply.

The hydro potential of
Sarawak is huge— estimated at

80.000 megawatts, enough to
supply the current needs of the
five ASEAN countries — but
development is hampered by its
distance from the main con-
suming centres. The state needs
only 75 megawatts.

Write-offs
hit net
profits
at Teijin

By Our Tokyo Staff

TEIJIN, Japan's largest manu-
facturer of polyester, lifted
parent company operating pro-
fits by 26.4 per cent to Y14.28bn
fifiltn), in the year ended
March, following a recovery in
the polyester marker and an
increase in sales of polyester
film for video tape recorder
tapes.

However, net profits fell by
11 per cent to Y536bn. because
of -the cost of withdrawing from
two joint ventures in Spain and
Mexico. Profits per share were
Y733. compared with Y837 and
the dividend is unchanged at
Y5.

Turnover increased by 2.6
per cent to Y460.87bn. Sales of
polyester rose by 8 per cent to
account for 58 per cent of toe
total thanks to a IS per cent
increase in exports. Nylon sales,
however, fell by 7 per cent to
account for 11 per cent of the
total, affected by sluggish
demand for tyre cord and
carnets.

The company aims to lift
operating profits in toe current
year by 12 per cent to Y16bn,
by a further expansion of
sales of polyester film and
high value added textile
materials. Net profits are
targeted at Y8hn, up by 49
per cent, on unchanged sales of
Y4G0bn.

Slowdown
in growth
at Verref

By Thomas Sparks in Johannesburg

VEREENIGING Refractories
(Verref)- the South African
manufacturer of refractory
bricks and materials which is
52 per cent-owned by Anglo
American Coal Corporation,
earned pre-tax, pre-interest
profits of R25.3m (?23-8m) in
the fifteen months ended March
31. In the year ended Decem-
ber 31, 1980 pre-tax profit was
R17.2m. Turnover was R156.4m
in the fifteen months against
R102m in the preceding year.

The company warned last Sep-
tember that profit growth was
likely to slow. - Refractories,
which account for about €0 per
cent of profits are being affected
by poorer steel industry condi-
tions. Building bricks and roof
tiles, which account for the re-
mainder of VerreFs operations,
are being affected by a slow-
down in buMding activity.

A -total dividend of 81 cents
has been declared from earnings
of 259 cents a share in toe
fifteen months. In W80 earnings
were 190 cents a share and a
total dividend of 60 cents was
declared.

[rerusemgm uuwea in wv*™*

It does not constitute an iitfitodott to the public to subscribe for or purchase my snares.

The Stewart Naim Group p.l.c.

(Incorporated. In England under the Companies. 4ct ISMS— No. 552331)-

Authorised

£3,500,000

Issued and to be issuedfuBypaid

in 70,000,000 Ordinary Shares of 5p each £2,060,111

The Stewart Naim Group p.l.c. is engaged in international property investment and development.

Application has been made to the Council of The Stock Exchange for all the 41,202^20 issued and to be issued
Ordinary Shares' of 5p each to be admitted to the Official List.

Particulars relating to The Stewart Naim Group p.l.c. are available in toe Extel Statistical Serviceand «>Pjesof
such particulars may be obtained during usual business hours on any weekday (Saturdays and bank holidays
excepted) np to artf i including 4th June* 1982 from:

Credit Suisse First Boston Limited,

22 Bishopssate, London EC2N 4BQ

Quilter Goodison & Co.,

Garrard House, 31-45 Gre sham Street, .

London EC2V7LH

19th May, 1982

Th»g advertisement f wbb th** requir ements of fha CVnmril ofTTia Stock Exchange

Bank of Baroda

(Incorporated bilndia) _

U.S. $30,000,000

FloatingRateNotes due 1989 .

Hie following Base agreed to subscribe or procure subscribers for die Notesr"

IJpyJ? HanTc Tntpm atmnalTimifed

Bank of Tokyo Intmiational limited
Commerzbank (Sooth East Asia) limited
Credit Lyonnais

Manufacturers Hanover limited
National Bank of Abu Dhabi
Socfete G£n6raledeBanque S.A.

Chemical Bank International limited
Credit Commercial de France
Dresdner (South East Asia) Limited
Samuel Montagu & Co, limited
Orion Royal Pacific limited
Sumitomo Finance International

TheaboveNotes, tobe issued atpar, with interest payaBlesend-annually in MayandNovernber, have been, admitted rodie
OffiriallistrfTheSax^Bcchangesutg'ectoniy to issue. Full particulars of the Notes are contained in cards ciraJmndby
Fj ffyl Statistical jmifpfl, and diTrm grMirrn^tegan esshreiis i^toarid i Dctii d i n gSnl Jube<

1982 from the Bxdceis to the issue:

Kitcat&Aitken,

The StockF.xrhanfie, London ECZN 1HB

19th May, 19S2

A

tl:i

New Issue. These acctmacs having been sold, tbi<Bnn oc mr einent appears as amattgregxccaidcnfr.Mky 1962,

r

SICflRTSn

Siderurgica Lazaro
Cdrdenas— Las Truchas, S.A.

(A company incorporated in Mexieowito limited liability and a memberof toe Sidermex group of companies)

U.S. $65,000,000

FloatingRateNotes due 1989

Uoyds Bank International Limited

Barclays Bank Group
County Bank Limited

(National Westminster Bank Group)

Credit Lyonnais
Midland Bank Group

International Trade Services

y. April 1962

SICA RTS R

Siderurgica Lazaro
Cardenas— Las Truchas, S.A.

(A company incorporated in Mexico with limited liability and a member of toe Sidermex group of companies)

Financing for contracts entered into
■ for a steel plate mill complex for the Sicartsa II Steelworks

Between Siderurgica Lazaro Cfardenas-Las Truchas, S. A.
and Davy-Loewy Limited

Arranged by The Lloyds Bank Group

Buyer Credit Facility for

c. DM 15 1,000,000

Arranged, Managed and Provided by

Lloyds Bank Inte rnationa l
limited

Buyer Credit Facility for

c.£ 198,000,000

Arranged and Managed by

Lloyds Bank Pic

Providedby
UoydsBank Pic
.Credit Lyonnais,

London Braoch

Barclays Bank Group

Midland Bank Group
International Trade Services

National WestminsterBank PLC

Banque Nationale de Paris p.l.c.

Banque de Paris et des Pays-Bas (London)

The Sumitomo Bank, Limited

Guaranteed by Export Credits Guarantee Department of Her Majesty’s Government

J-

»

36

Companies and Markets CURRENCIES cUld JMONEY

Late fall by dollar

THE POUND SPOT AND FORWARD

■ The dollar showed a sudden
fall in late European trading;
following news of the insolvency
of Drysdale Government Securi-
ties, a U.S. securities firm. This
was followed by intervention
from the Federal Reserve to add
money market funds, leading to
■hopes of an easier trend in U.S.
monetary policy, despite yester-
day's firmer trend in Eurodollar
interest rates.

Sterling remained nervous in
expectation of further develop-
ments concerning the Falkland
Islrads.

DOLLAR — Trade - weighted
Index (Bank of England) 113.2
against 112.6 on Monday, and
3063 six months ago. Three
month Treasury bills (12.20 per
cent (10.05 per cent six month;
ago). Annual inflation rate 6.8
per cent <".7 per cent previous
month) — TIip dollar touched a
peak of DM2.33 against the
D-Mark, but closed only slightly
firmer on the day. at DM2.3150,
compared with DM2.3015. It rose
to FFr 6.0125 from FFr 5.03
against the French franc: to
SwFr 16680 from SwFr 1.9540
in terms of the Swiss franc; and
to Y236.90 from Y236.60 against
tile Japanese yen.

■ STERLING — Trade-weighted
index 90-0 against 896 at noon.
90.1 in the morning, 90ft at the
previous close, and 90.3 six
months ago. Three-month inter-
bank 13 t> per cent (14s? per
cent six months ago). Annual
inflation 10.4 per cent (II per
cent previous month)— Sterling
fell 50 points against the dollar
to close at 81 .8135-1 .5145. It
traded wittera a fairly wide range
is the afternoon, falling to
'Sl.SOnO-l.S01D shortly after lunch
and touching a peak of $1.8140-
1S3 60 near the dose.- The pound
rose to DM 4.20 from DM 4.10;
tc FFr 106050 from FFr 10.S950;
and to SwFr 3.5725 from SwFr
3.5575. hut fell to Y430 from
y 43060.

D-MARK — EMS member
(strongest). Trade - weighted

index 123.0 against 225.4 on
Monday, and 222.6 six months
ago. Three-month interbank 9.10
per cent (10255 per cent six
months ago). Annual inflation
5 per cent (5.2 per rent previous
month)— The D-mark weakened
against several major currencies
at the Frankfurt fixing, including
the dollar and sterling. The U-S.
currency rase to DM 2.3194 from
DM 2.2915, and the pound to
DM 4.1S60 from DM 4.1840, but
the Swiss franc cased to
DM 1.1759 from DM 1.1810.

FRENCH FRANC — EMS
member (third weakest). Trade-
weighted index was unchanged
at 80 J. against 8L3 six months
ago. Three-month Interbank
16£? per cent (151 per cent six
months ago). Annual inflation

14.1 per cent (13.9 per cent pre-
vious month)— The franc rose
against all its EMS partners at
the Paris fixing, but lost ground

to the dollar. The U.S. currency
rose to FFr 6-0445 from
FFr 5.9755, while sterling fell
to FFr 10.9070 from FFr 109150.
Within the- EMS the D-mark de-
clined tn FFr 2.6037 from
FFr 2.6077; the Dutch guilder
to FFr 22430 from FFr 2.3465;
the Irish punt to FFr 8.0250
from FFr 9.0350: the Belgian
franc to FFr 13.7940 per 100
francs from FFr 13.8280; and the
Italian lira to FFr 4.6930 per
1,000 lira from FFr 4.6950.

dutch GUILDER — EMS
member (third strongest).
Trade-weighted index 115 .3
against 115.6 on -Monday, and

115.1 six months ago. Three-
month interbank 8H per cent
(lit* per cent six months ago).
Annual inflation 6.8 per cent
(unchanged from ■ previous
month) — The guilder showed an
easier trend at the Amsterdam
fixing; losing ground to the
dollar, sterling and tbe Japanese
yea. The dollar rose to
FI 2.5525 from FI 2.5470; the
round to FI 4.6580 from
FI 4.6480: and the yen to
FI 10.85 per 1,000 yen from
FI 10.826.

May 1ft

Day's

spread

Clos*

One month

%

p.a.

Throe

months

P-a-

U.S.

Canada

Nethlnd.

Belgium
Denmark
Ireland
W. Gw..

Portugal
Spain
Italy
Norway
Franc*
Sweden
Japan
Austria
Swftz.

1.8000-1.8160

Z2300-2.2480

4.65-4.63

78-90-79,50

14.17-1427

1.2060-1.2120

4.18-4.215

128.75-128.50

18S.fiO-U7.25

2321-2333

TO.7B-lO.87

10.88-10.S4

10.45- TO .55
427-432

23.45- 29 65

3.58-3.53

1.8135-1.8145 Oftl-Ofttc dis
2-24*6-2.2470 0.57-0.67c da
4. 66**4. 67 1 * ‘ 2-1 Sc pin
79.35-79.45 20-30e dis

14.25V14.264 7V8*iOre dis
1.2106-12115 0.B2-0.74P dis

4.19V42CF, V r V*pf pm

128.00- 12820 110-38SC dis

187.00- 187,20 52-57c die

2331-2333 20-241 iro die

10.8SVW.88i, 4415\ore dis
10.90-1051 18-1 9c da

10.5ZVW541, dpi

42BV43QP, 250-2.30y pm

29.60-29.65 lAVIISgro pm
&58*-3ft7* 3V2 7 iC pm ..

Brigina rate is tor convertible francs. Financial Irene 87.55-87.65.
Six-month forward dollar 1JD-1.30C dis. 12-motaJi 1 55-2.1 Oc di3.

THE DOLLAR SPOT AND FORWARD

-1.72 0.63-0, 73d 13 -1-50
-3 ftl 1,«-1.5Sdb -2.67
4 JO 5 VI 7 . pm 4.39
-3.78 60-70 dis -3.27
-6.52 18 , r20 , » dla -5.45
-B.74 1.88-2.02diB -041
4,54 4M Pf» 4.40
-23.17 320-1015dia -2D -S3
-3.48 1S5-230dis -4.54
—11.32 59-63 dis -10.46
-5.59 9 * 1 - 10*4 dis -X57
-19JS6 34-37 dfs -13.02
0,50 s * pm- 1 , dis 0.09
6.70 B.60-6.40 pm 6.05
5.18 36*.-29h pm 4.4B
10.50 8 7 i-&>, pm 9.66

May 18

Day's

spread

Oc

Ona month

%

p.a.

Three

months

UKt 1.8000-1.8160 1.8135-1 .8145 0 . 21 -0.31c dis
Irelandt 1-4895-1.4880 1-4960-1.4980 OftS-O ft 8 c pm
Canada 1.2330-1^400 1.2395-T.MQ0 0 . 12 - 0 . 15 c dis.

Nethlnd. 2.6775-2.5880 2.SB10-2J840 1.40-1 -30c pm
Belgium 43.75-43.SS 43.7M3.78 6 - 9 c dla

Denmark 7.8630-7.8075 7.8830-7^680 3-3*.ora dis
W. Ger. 2^140-2-3300 2ft145-2ft1S5 1.28-1 .21 P* pm
Portugal 70. 50-71.00 70.83-70^0 B0-200c dis

Spain 103-00-103-45 103.15-103.20 15-25c dis
Italy 123SV1289 128BV1288*, 9-10lire dis

Norway 6-330Q-6.0016 6., 9900-5.9950 1 , 40-1 .More dte
France ' 6.0050-6.0850 6.0100-8.0160 BV94c dis
Sweden SJ80W-SJ8ZB0 5ft150-Sft1M 1.15-1. (More pm
Japan 236.40-238.75 238.85-236.95 1.71-1.63y pm
Austria 16.32~18.41*, 18.34-16.35 10*,-9gro pm

Swit. 1.8680-1.9900 1.9678-1.9685 ZX0-1,32c pm

t UK and Ireland are quoted m U.S. currency. Forward premium'! and
discounts apply to the U.S. dollar and not to tha individual currency ,

—1.72 0.63-0 .73d la -1 JO
5 M 1.90-1 .75 pm .4.89
-1.31 0ft1-fl.3Sdis -T.06
6.28 3.82-3.72 pm 5 .85
—2.05 17-22 di» -1.78
-4.77 7V8 dis -3.94
6.40 3.53-3.48 pm 6.06
“21.19 TSC-SSdtS —19.07
— 232 70-30 dta -3.10
-8.88 28-30 dis -9.01
—3.20 2.80-3. 20dia -2.00
-17.92 TTVIBUk -1258
2.21 2.40-2.25 pm 1.60
8.48 4.46-4.35 pm 7.43
7.07 25-23 pm 6 00
11 J6 5.48-5.40 pm 11.06

CURRENCY MOVEMENTS CURRENCY RATES

May 18

Star

U. 8 .

Canadian dollar.... I
Austrian schilling.!

Belgian franc. i

Danish kroner.

Deutsche mark-... [

Swiss franc..

Guilder

French franc j

Ura - I

Yen-. >

Bunk of
England
Indax

Morgan
Guaranty
Chang aa%

90.0

—53.2

na^

+3.6

86.6

—19^

117.9

+ 26ft

SS.7

—1.4

B4.8

-13ft

123.0

+48.3

146,7

+93.9

113.3

+ 21.6

PO.l

—13.9

64.3

-88.4

238.0

+32.4

■Bank] Special European
May 18 I rate i Drawing : Currency
I % ! Rights Units

Baaed on trade weighted chan gee from
Washington agreement December. 1971.
Bank of England Index (base av a iag a

1975 *■! 00).

OTHER CURRENCIES

Sterling I — ! 0.627257 j 0,569431

U.S.S. _ 19 1.15210 1 1.02725

Canadian 8 . Jl5.4l! -•

Austria Sch.| 63?: 10.5055
Belgian F—J 14 I 49.6464
“ - - “ It 18.90963

73*- 2.62579

8 '2.92365

9*si 6.84298

19 ; 1458.14
' 6 I 3 368.761

9 (6.75715
8 111 6.842

IQ \ 6,57184
5tg 2,22250
20*3' 71.7185

Danish Kr._
D mark..
Guilder..
French Fr.„.

Ura- -I

Yen
Norwgn. Ktj
S panish PtsJ
Swedish Kr.
Swiss Fr..._
Greek Dr'oh;

. 1.27338
1 16,7956
! *5.0476
! 8.09752
2,38528
2.65065
'6.21591
: 1525.10
1244.127
6.15787
105.856
{ 5.97450
[ 2.02626
! 65.0765

• CS/SDR rats for May 17: 1.41111.

EMS EUROPEAN CURRENCY UNIT RATES

ECU

central

rates

Currency;
amounts
against ECU
May 18

„% change
from
control
rate

%' chertge
edjustod for
divergence

Divergence
limit %'

Belgian Franc ...

44.6983

45.0476

+0.79

+1.03

±1-5440

■ ■IJiJlLB.UilJ—

8.18382

8.08732

-1.06

-0.82

-+1.6428

German D-Mark

2.41815

2.38523

-1.36

- 1.12

-*-1.1097

Ftanch Franc

6.19564

6.21581

+0.33

+0.57

±1.3742

i Dutch Guilder

2.67296

2.65083

-0.83

-0.59

-*-1.5069

Irish Punt

Q- 688799

0.688369

Mi’ M

+0.56

±1.6683

italien Lira .1— .

1306.13

+1.38

•+ 1 .»

±4.1242

Changes ere for ECU, therefore positive change denotes a

yreak currency. Adjustment calculated by Financial Timas,

For Sterting/ECU rate see CURRENCY RATES table.

EXCHANGE CROSS RATES

t Now one rate. * Selling rats.

May 18

Pound St'rling

Uft. Dollar

Deutschem’k

439811*00 Yen

Italian Ura

vi'.hh'itwij

Mtaratiratotaad

■ ' |

Pound Sterling

1

1.814

4.200

430ft

10J805

3.573

4.670

2332.

2 ft 47

79.40

tLS. Dollar

0.551

1 .

2ft 15

237ft

6.018

1ft 69 .

2.674

1286.

1.238

43.77

0.238

0.432

1 .

102.4

8.596

Oft 51

1.112

666 ft

0ft55

18.90

Japanese Yen 1.000

3.326

4ft 19

B.767

1000 .

2 Sft 6

8ft08

10 .B 6

5423.

Sft24

184,7

French Frano 10

0.917

1.663

3.851

394.3

10 .

3ft76

4ft82

2138.

2.060

72.81

Swiss Frano

0.280

0.608

1.176

120.4

3.052

1 .

1.307

683ft

0.629

22.23

Dutch Guilder

Oft 14

0.388

0ft99

B2.08

2.S35

0.765

1 .

499.4

0.481

17.00

Italian Ura 1.000

0.429

0.778

1.801

184.4

4.676

1.532

2.003

1000 .

0.963

34.05

0,445

0,807

1.870

191.4

4.854

1.690

2ft79

1038.

1 .

35.34

Eo(g an Franc 100

1.85 9

2ft85

5.290

541.6

13.73

4.489

6.8 82

8937.

2.82s

10O.

FT LONDON INTERBANK FIXING (11.00 a.m. MAY 18)

8 months U.S. dollars

bid 14 11I1E

offer 1416718

6 months U.S. dollar*

bid 14 11 >16

offer 14 15(16

Tbe fixing rates are the arithmetical means, rounded to the nearest o»e-oixteenth,
of the bid and offered ratsa for S 10 m quoted by the market to five reference banks
at 11 are each working day. Tha banka are National Westminster Bank, Bank of
Tokyo, Deutsche Bank. Banque Nationals do Paris and Morgan Guaranty Trust.

EURO-CURRENCY INTEREST RATES (Market closing Rates)

May IB

Sterling

U.S.

Dollar

Canadian

Dollar

Dutch

Guilder

Swiss
Franc -

D-mark

Franch

Franc

Italian

Ura

Belgian Franc
Conv. Fin. j

Yen

Danish
| Krona

Short term

153fl-135p

144..147B

16-17

873-9

li «-2

8Saft54

35.45

19-21

14-17 1«

14J«.151* ,

66a-67i

1 201: -20 T e

7 days' notice....

133* 1358

14J,-15

16-17

85*-9

2 - 2 i s

868-85*

35-tiS

20 *t -22

15-18

147 a . 15 1 8

6T&-7

; 21 ip- 2 i >3

Month

13J«-13I?

14i»-15

1616*}

8ib-9

32-35

22S«ft3^

16.171a

14i*-147a

1 2048-21

Three months

13Jfl-13is

14A-14H

lSij-15i fl

87 a 9

3hi-3rt

bsbW,

26-2B

23*5-24*3

155* -16**

143«.14;,

7-71,

1 2048-21

Six months

13*1-1315

14l = -14i4

15i;-157a

8 rj 8 «

45a-4Ai

23l8-24ls

2358-241*

26-1613

1458-1444 ,

1 19 1*191:

One Year

13Ja-13i?

14^-I4ro

1563-16

8 |-;- 8 ij*.

4*4-478

a * 8 - 8*2

20 * 8 - 21*8

2338-2418

1513-16

14,>14fi !

67 b -7

; nij-iBi*

SDR linked deposits: one month 14-1 4^ per cent® three months 13V-13 t, » per cent: six months 13*».13*n per cent: one year 121.-13 1 , per cont
ECU linked deposits: one month 14V-*4**» per cent: three months 14V14*, per cent; six months 13*V-14*» Mr cant; one year 13V >3^ per cent.

Asian S (closing rates in Singapore): one month 1d**i* per cent: three months 14V14* per conn six months 14V14*. per cent; one year 14*»-14 r » per cent. Long*
form Eurodollar two yceis 14*i-14>j per cent; three years 14 VI 5 por cent; lour year* 14V15** per cent: five years 15-15*« per cent: nominal closing roles.
Short-term rates arc call lor U.S. dollars. Canadian dollars and Japanose yen: others two days' notice.

Ore following rates were quoted for London dollar certificates ol deposit: ona month. 14.45-14.55 por cent: three months 14.35-14.45 por cent; six months
J4.25-4.3S per. cent; one year 14.10-U.20 per cent.

MONEY MARKETS

UK rates continue to rise

[UK clearing bank base lending
rate 13 per cent (since
March 12)

Tension increased and the
level of business decreased in
tbe London money market yester-
day as hopes oE a peaceful settle-
ment to tbe Falkland Islands
crisis receded. Period rates in the
interbank market were generally
one eighth of a paint firmer than
Monday's levels with three-
month money at 135-131 per cont
and six-month at 13 Vs-13t* per
cent. Overnight funds opened at
133-132 per cent and rose to
135-13J- per cent before coming
away on the forecast to 13J-13i
per cent. Rates fell away during
the afternoon to finish at S per
cent

The Bank of England gave a
forecast of a £50ra shortage, with
factors affecting the market
including bills maturing in
official hands and a net take up
nf Treasury bills — £170m and
banks' balances below target by
£2 20m. These were partly offset
by Exchequer transactions of
£120m and a fail in the note

MONEY RATES

NEW YORK

Prime Mis IS*,

red. fundi (lunch-time) .... 1SV14 7 *
Treasure bills (13-weoH ...... 12.20

circulation trf £70ra. Tbe Bank
did not intervene in the morning
but bought £64m of bills in the
afternoon, comprising £2m of
eligible bank bills in band 1 (up
to 14 days) at 13$ per cent and
£S2m of eligible bank bills in
band 2 (25-33 days) at 23 per
cent.

In New York trading was
again quiet with Federal funds
trading between 145-14J per
cent. The Federal Reserve Bank
entered the market however to
inject Slbn through overnight re-
purchase agreements. Some saw
this as an attempt to allay any
market tension after reports that
Drysdale Government Securities
was unable to meet interest pay-
ments due to Chase Manhattan
Bank.

In Frankfurt call money was
steady around 8.95 per cent,
Monday's addition of some
DM4.2bn to the system has
allowed banks to reduce bor-
rowings through the ■ Lorabart
facility to DilII.4bn on Monday
down from DM42bn on Friday
and there seems little likelihood

LONDON MONEY RATES

in the near future of further
injections of liquidity. Longer
term rates were also steady with
little expectation 0 / any change
in credit policies or key lend-
ing rates at today's meeting of
the Bundesbank central council,
so soon after the abolition of
the special Lombard rate.

1

104.

9To

:..3mor*thEuro-
i#/tSvnss franc Rate

mrnm

,

i: *££>*:

VV.:^ ’

r

_

Vv.'\C

r\:;:

iij

I V

1 — D J F M A M 1

( 1981 1982 J

EUROCURRENCIES

Eurodollars

firmer

Euro-dollar rates were higher
yesterday while U.S. domestic
rates held steady. This helped
to push the dollar firmer in the
spot market but mostly weaker
in forward trading. The more
notable exception was sterling,
against -which the dollar showed
a narrower discount in forward
trading as Euro-sterling rates
rose in anticipation of a possible
invasion of the Falkland
Islands.

The Swiss franc showed a
much wider premium earlier in
the day compared with Monday
despite a rise in Euro-Swiss
franc rates but its premium
tended to narrow later.

Elsewhere the D-mark re-
acted to higher Eurn-dollar
rates and was much firmer in
forward trading while Euro-D-
marks were virtually unchanged
from Monday. Eurn-Frenrii
francs were higher and tbe
franc showed a wider discount
in the forward market although
it showed a small improvement
from levels touched earlier in
the day.

Financial Times'Wednesiiay May 191982

FT UNIT TRUST INFORMATION SERVICE

fittey Unit Tst. Hngn. (a)

7280. Gaetoo® R4.

Ajiwrtean Enroth

B enro lUnterirr "

cTtaFiroTnL‘_'_l'.!

Eoutm Png 187.6

Alien fla rwy 4 Ben Unit Tst Hugo.
45, CanriRH/loitiM EC3V 3PB. 01-623(014

AHR GHiTmi [9L6 ft.4* -05} 12J9

ASM Hambra Ltd. (a) (g)

BiH. In*. Fund f

Growth & Lticdok l

Efect.&IndLOn J

AUTHORISED TRUSTS

Crescent Ust Tst- Mnvx. Ltd. la Kg)

AMehriMe Cm, Edntawgh 3

:&£?S:zz\

.HM40ML- |

» Mrnutionsl .—j

— . Rewnrcs — ...

Cm- Tokyo ]

BvtimtM Unit Trust UtogL Ltd.
ttartington, Totnes, Own T® 6 JE. 09099622X1
Total Pnf. Ut&TsLBU' 52)

;; itidgefU IlSmgeinwt'Ud.
• iFmewyS^eoAlPB

‘ ' Mieeme UT:. .^ J759

Intarretkmi (IT .1103.4

L 4 C Vnjt Trust Managentnf UA, ********

01-589 tfflft

-j$ a

01-6264356

031-2263492 The Stock ExGatty, LoTOen EC 2 N 1 NA 568 290) St. &BtWs Ua», UWdQfl Efi^.

y i tssasfejsi .laid a SSSSft-iSVj' :

pi A fiwml (Unit TsL, Mngn.) Ltd,
iTO!gr(ld v Smtwied - (B77 217238

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WttSk=
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intprroUo&sL 1

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KurctiBnuy U^t.Fuod Managers
36i3BNre Broad SLECailNU. • 01-6384485
(»*. Inc. *Uyl4„[280J 2«.9a| . . ..| : 457

Dunbar Lhrft Trait Hansen Md

53, Pan MaH. UwJon, SW1 54H. 01-9302122

IncoRia & 6 rwth.___ OL(

Special Sits. fm

Lmttre AdmtnbtnUan Ltd.

Z SL Mary Axe, EC3A 88P. 01-6236114.

Uayds BJL Unft Tst. Hngrs. Ltd. 03.

Si 01-6231288

*2 IS

E. F. Wlmhp sttr fma Mnt Ltd.

44, Bkwiwbug StBiaw, WCU 2Rt> - 014238893

HBSKrJT P

EtpHty & Um l/a. Tr. «L (a) (til- Cc)
AneisBan ftt , High

IS K&iz::

Jl*L „

Eartra \m
Do. (Acre
Incomes.

UeLMIfl.AC’dtv...-,

Overseas Earotags—.

Fro*

Far Ere ExeanTl".",

Soulier Co. Exempt..

US. A. Ewwk_J?.-

Aadertan Uatt Treat Managers Ltd.

62. Lawton Wall, EC2R 7DQ 01-638 1200

AnOersna U.T_ *7.8 7 12) f 3 l37

AnsbMto Unit Mgst Co. Ltd.

L NoWe Su EC2V 7JA. 03-726 4931

Anthony Wlefer UnK Tst. Mgmt. Ltd.

19, Wideqste SL. London, E17HP. 01-2478877

BtSCiaiH szl ..::J “

Arbuthnot Secortttea Ud. (aUe)

37. Quota St. London. SCAB 1BY. 01-236 5281

FUsShr Intenatlmul

20, Usdacta Lane, London EC4N 7AL.

American (z)

trues esili

) nrart.'va 1 m

eTnRc.

Inc. Eq

Special Ska. — ....

3a too Finlay Unit Treat MngL Ltd.
10-14, West NUt Street. Glum*. « 0414041321

►•tawz.-- 1

Aecnmt

. II Cat. 6 Recv-
Do.

Lloyd’s Life Unit Tst. Mngri. Ltd.

2.SL MarpAxe. EC3A8BP. . 01-6236114

£airityAccum.(2)_-J2W.7 3I5JJ ( 3J$

Local Authorities’ Mutual Invest. TsL*
77. London WaJL'EC2NlDB. 01-5381815

BsStoddd Asset Management (a) (g) iz)
72-80, fiatetaux Rd. Ajicsbury. 02965941
-M.C. Easy R*5,T*t .^-!

NX. Jirame fl—,

N.C. America '

Ni. America

NX--SmiUerl

Remit Unit Trust feSagt U)

City Gate Wv-.. Resfctrr So-, EC2.

-aS

MU

Royal Ufe Ft Mgmt. Ud. -

New Hall Place, Lherprol L693HS 051-2274422

mSSnzM--- .M.^a =.

Bmal Tst- Can. Fd.- ffigre. Ltd- '.

48-90, Cannon SU London EC4M 6 LD 01-2366044

48

. Prices on April 20. Keel ctallns Cir JUaj 2B-
Save m fTrpspgr Sresep -
4, Great St. Hetere. Me EC3P 3EP

l.f.U.

Select Mernstiorel..' ...
Uni«.G«wa_'_.. 183.7

Incwno bB teCow* Fort

Hlflti-Ylcic,-

SmfcrCOL Inc. Fd..

MAC Group (yXcMz)

Tine Quays, Tower HITI. EC3R6BQ.
American.. ~

01-626 «58B

fegln U ngb7r-'

^j!fc

May IB
1962

| Sterling
Certificate
I of deposit

Interbank Authority '.negotiable .
da posits '■ bonds

1. D'twuBt: ■ Eligible rine

House jCompany Market .Treasury . Bank . Trade
Deposits Deposits Bills* Bifli« ; Bids *

Deposits

Treasury bills (26- week) 12.24

CERMANr

Lrenbard . . 9.0

Ovornign: raw 855

One monrn 3.175

Three month* . 3.10

S'X months S.8S

FRANCE

Intervention rale 16.0

Overnight rate 16-37S

One month 16.1875

Three months 16.3125

Six months — 15^625

JAPAN

fiiseount rate 55

Call (unconditional) 7.15825

Bill discount (ihroo-manth).^ 7-15625

Overnight — j 8.135 4 ; 133s- 13*; j —

2 days notico-J — — « 13 ij j —

7 days or — j — ! - J —

7 days notice... - 333c 153a . lbJi —

One month. .*... 15rV-151e lSiz-lfiia i 153g I 13ls-15*£

Two months.../ 15^-13^ J 15re-131a i — i 13**- 13%

Throe months.: Isjs-IS'i 1338-13*: , 13** \ 13VlS*a

Six months 13^,13^ ! 15 Sb- 13A - 13 U ! IS’c-l? 1 *

Nine months.., 13,-; 13,,- ! 13^13,; J ~ Jf; 4

One year 13 r '>-13i< 13^-13^ 13 3 a . I5*j-13i8

TWO years -- 1 — i 13^ . — . .

- !13*4-13S8 10-13 , -

13*:
13i s
13 Ij
"13ir
13, r

.(13*2-133,

; ' 13?a 12?a-I3 13w-13+

137a 1254-1273 12-: 1

, 137a IZif 124, IBk-M.*!;

I “

Local euthantnis and finance houses seven days' netice. ethe rs saves days fixed. Long-term local authority mortgage
rates, nominally throe days 13 7 , per com; four years 14 per cent; five year* 14** per cent. ® tank bill rotes m tabio ore
buying rates lor pnme paper. Buying rates for four-month bank bills 121, por cent; four months trade bills 13*, por
gont.

Approximata sclhng rates for Ore month Treasury bills 12^tt per cent: two months 12 7 s per cent; throe months 12?a
per cent. Approximate soiling raw for ono month bank bills 13 per cent; two months per com and ihrrc months

J 2 »j, per cent; one month irade bills 13*j per cant: two months 1% per cent three tconrhs 12 per com

Finance Houses Bobo Rates (published by the Finance Houses Association) 14 per cent irom M-iy 1 133? London
and Scottish Clearing Bank Raise for lending 13 P«r canv London Clearing Bonk Deposit Raids lor sum; at seven rt JW s‘
notice T0-1M per canL Treasury. Bills:- Ave rags tender rates ol discount 12.5023 por cent.

Cortihcatc* ol Tax Deposit (Series 5) 13> per cant 'ro w May 14. . Deposits withdrawn ]nr cash 11 par cant.

May 18 R

i

1

*

! Nets Rate*

I4.200-14.250t
Qj94 80 0.0453
1 60ft B- 16 1.08
4.6300-4ft320
63ft0-63ft0
5.7560-5.7410

Austria. ! 29.40-29,7

Belgium 1 86.8087.80

Denmark [ 14.15-14.29

Franca j 10ftS-10ft5

Gtmony. ...j 4.174.21

Italy 22902345

^^8

softs*

Oft 861-0.2863
43.78-43.78
2,29802.3015
Iftfl 85-1.3005
3.4305-3.4320
2ftB10 2.0945
1.0745-lft76O
2 .6715ft. 6730

Japan, ; 429-434

Natheriands 4.644.69

Norway 10.76-10.86

Portugal 124i a -131

Spain 1791;- 1885*

Sweden- ' 10.45-10.53

Switzerland — 3.64-3.58
United Stataa_! 1.79U-lftli*

Aiqh h .

(Acosmiiatiaa)...,

IniiYlfU ST3

(AeaxmXahss} Tih

Hanhlupfrica »2

Pre fr r M CT 0)5

feKS=,::itJ

( AcanwIatlM) _{44 6

Arcfreay Unit TsL Mgs. LtiLCsHc)

117. Hit* Hoftom, WC1V 7NL 01-831 6233

ArirwigM M awsgiro s nt

Parsonage Caw., Mmdmter 061-834 7333.

Ariwr-^tFd. May IS, II05.1 1UH -^3 391
Barclays Unfeore UdLU)(c)(g)

Unicom Ho. 25^ Ronford Rd w E7 01-5345644

UMcare America..

OoTSutt Acc. „

Oo.A«t lac.

Do. Capital

Do. ExrnplTq

Do. Extra I ncome J...

Do.

Do.

Do, ...

Do. 6iH 4 Ft* im. loc.

E>a. Sir. Pacific Acc—

Do.Gtr. Pacific Inc...

Do. fiiowtti Act v.

Friends Free. Treat

Pnriom Cod. Deriring.

(a)(bHc>
Tri. 885055

fc0 ° »a«a

khbbc£3

Fund* in Court* •

Public T mtee, Wopm. WC2

Oa Beanery

Do. Trustee ruod

Do.WMeldP TsL te .4

BULIn Jd A«. 1117-fi

Do. Income ( 8 JJ

Baring Brothers & Co. Ltd.

4 Bbhopwatr, EC2N4AE. 01-2838833

Stratum TnsL. 12B3 .Q 295^ I 421

OaAcaan... .... . 17712 4WJB ... J 421

Nnt s«A. day l 6 y 25 (by 1ZOJ noon).

BislMpsgate Progresstse MgmL Ce.

StocJr Exchange, Loodou, £C2N H13. 01-5886280
B 1 *!*. ~»4ay 11 ' '

AixTUriti **t» 8 J 11 .

B-gate Int Mayl 8 ..-
Aram. MayB

Beclaaan ln«. Cw-*-

«.T. Unit Mmagere Ltd.
16. Fhnbtny Circio, EC2M70J.
y.Cje hKonw.._-Q547

6T.l£w.uiL.7“"|

aERjfcnd

G.T. European Fund

G. & A. Treat U1 (g)

5 Rayirigh Rnd, BreotHood

6 & A. |4U

Gartmere Fond ihnaui

2 S(. Mary Ax*, EC3A8BP

DeaHog arie; 01-623

American Trust.

Audalaa Trest
BnbOiTd. '

British Tst. '

CrnwHodliy

Extra Income Tst ....

Far East TroX

:ISlo

ItemUfe Mangement Ltd.
SI. Grerge's way, Stnenage.

Mali Mcarna Funds
GC&FM 1 InL Inc..

HhFi Rwum —

Ina ra ... ■■■ ■■ —

Sik Grib. .156.9

UK Eerily -.1 67 j

Funds U1

EXpnnrlon Fund b» :
FtaneM Secs--,- .J
New Terimotagyiz)..

634 -<-021 223
Iwm Income* 1208 02 * . -.1 JM

ScstiritsSacadtias i

ScolUti...

Schroder Unit. Trust Managers Ltd.

4S, St Martins Lane, WC2 Oesdngs 070527733

Inara Fro.

'taro Until)

( Acorn. (Ate)

(Aca*a.UiVtsl___

■82tt&=z:

043856101

BJ

Mayflower Management Cc. Ltd.
14>1B, Grade ‘

rApriI27.—

si-m

.GradwuSt,, ECZV7AU.
H26: — mi6 ii9.

016068099

usja

(0277)227300
SL44-0AI 523

1-6236114

Bridge Fired Managers (a)(c)

Rems Hsr., Kmo Wifcam St, EC4. 01-6234951
Amer. Gear...
krocra*

‘ rih

H-T

| j

1 °

W. Rewraiy l«4_

Do. Acc4

Bribsnb Gp. of Unit Trusts Ltd. UKcXg)

■ EC2

Ins.

Inc. _ _

IreLTjL,

Inti. Tst.(Drit)

Japan T

Soeriri Ste. TsL go?.

UKSm.Co.Rec Trad. (29.4

G ovett (Mm)

77 London Wa«,EC 2

SL Himwan Mjy7

McAmVjr Find Msagenciit IM

Regis Use, Kbtg WHflM SL, EC4. 016234951

Gtei Fund Inc ---.-(746 -Ofc| 434

Me n ca p tMt Trent Mngrs ltd (AXcHg)

UricmaHse.252BMdbitiRd.e7. - 01-5345544

Mencro r (4B.l 5L7] . :..J 629

Mercay Fund Managers Ltd.

30, Gratia* St, EC2PZEH. 01-6004555

&£:—***

iro me

IrttL D*B--_„.

UK Saeriamt Fonts

AhtC. - '

Rtrorery ..

Smaller Cov.

Spec Mtt.Shs.

sataK-

Nai_ High lnc_.

Enira Inc.

Inc&Gra-.

ftrii’S&re

Sadnr
Comm

Financial

Gold & General 1301

inv. Trust Stares- 63.1

Minerals S6J

Prop. Stares 38

lini*. Energy 538

World Trail ^.fZ3.4

0*bhx Furos
OoktI OO Growth
Am. Smaller Cos. - ..

Am. S<«. Ste. _

Far East

Hoogfcj. Perimoce. .

Inti. Growth-

Japan Perf. Ta .

Caciul Acc

Loom. & ind.

Dorarsoc

Profe-.sunat |849 .

SlneW 157.4

Uay ZL

firiceesen Managenent Ca. L

59Gresham Straw. EC2P20S

462 BarrjBflwo May 12 0568

540 (Acaae. Units]- 4A05

fer’gn.H.YJtoU-lTLA

Barrgm'.Wh^ls"

isaste

(Acorn. Unto)

Entiea*. I4a* 11

&BiC

(Actum. UritsV L„

ln. andZrua.Mvl2-
( Acorn. Bote)- — ISO

016885620

016064433

+02 12.76

m

Goredlen ftayal Ex. Unit Mgre. Ltd.

(loyal Ewtiange, EC3P3DN 016280011

(ae) Gaarritib Tti 11402 M52J -17) 431

HendertM A d wln u ttetiow <■) (fa> (c)

* Rw *

UJC. Fonda

Special Ste M3 3

Scan Units) 57.4

Recorare 433

Cap. Growth. 910

Acc. Units 1 010

Iro & Assets. -09.7

NRdtand Bank Group
Unit Treat Mmagere Ud. '

ssssyii S| ” “* Km

Drayton

MJIclI

Connood l tr t Gen—

Gai&Fxd - 1

Do. Acc.—.,

High Yield. - K

Income.

Do. Act
IM

CC.

, j American

RW5T”4._ _

•Prices at May H. Nea tieritag May :

Mhatw Fond Managers Ltd.

Water Hst, Arthur St, EC4K 9 BH 01623 1050

iSS ::;:J IM

WLA Hi* Treat Mngnmt Ltd.

Old Quran Street, SW1A9JG. 01-222-8177

M LA Units P0S.9 Ull) -D2| 365

Murray Johnstone U.T. Mgnt (al
163, Hope Street, Glasgow. G22UH. 041-221 5521
f American— .JAM SQA -.^1 4ft

•Fv Mr.arenpt fmth any.

Scottish Amicable kn. Mngrs. Ud. .
150SI VricenlSLCbtaoi*. - 041-2462323
tority Trust Acciro-JU62 12S4-13 521
Scottish EquHaMe Fund Mgre. Lid.

28 SL And re ws S q. Bdtabngti 031-5569101

:ea as=ja;. . mi ».

DaNog dv WMowriy/

Scottish Widows’ Fund Management

P.0. Box 902, Eriobureb EH165BU 0316556000

PegantrTtL Miylfi.pfilfi • 109. 4| -12 —

SWCO Money Finds . -

^0M 36^ ^

Stewart Unit TsL Managers Ud.(a)

45, CtaririW So, Edinburgh. (812263271

Bssp-=i

Wtttaowa Units
•BrtUtiiG
AcaroUi _

**EsraMB_

Dal L TTres.-A

*S*fd “Mw£ A Pair.

Sun AHtoice Fund Management lid.,
Sim A8mce HK^Horehani. 0403 64141

m «

Swiss Ufe Ail Tst Man- Co. Ud.(aKc)
04 «-12 CheaMUt. London. EC2V6AL 01-2363841

E£ Equity Dot* 102864 13603 .. .. 1 427

BJZ5 Ei^tyAct-. f 427

“ " Fuwf ro DfiLt lw3T 102.W .....J 12.60

Fotd Jro Arot .---100703 1IL7| .. .1 1260
m ito 12. Neat Jane 9.
tPrtces a* fcy 5. Nort (Mhib Jure 2.

Target TsL Mngrs. Ltd (a) («)

217

a.’--.

31, Cftsham St, E.C2.

Dealings; 02 % 594L

“ M ^

BOO

eatiSC.^=By iff

Far BrtiWi Uie Office ret Redrere Urit Mre.

Brown Strip ley & Co, Ltd. (a)(g)

Harianfc Hse, Haywanh Htti, Sx. 0444458144 .

IfMfcikf 1 * “ ***

Flnsadri

Growth Accun .. .

Growth i flora ....

Hrgh Income

Inara--

Indfi-

North American ......

Orteot J

Reccw*

Tedmotag*

Ewsta*

Butkmatter Maisguwtrt Co. ltd.

The Sloth Exchange, EC 2 P 2 JT- 01-588 M 6 B

BodcTiwFAMayl3..~"

(Aeon. ItelltolB,

Mr. CoS Fd. StoW J

(taim. Ills.) May 14

wm Friab

Inc. & Growth

KSSSiSPh.— 1

Extra Iro -..I

Gilt Trow

SEXES M

ri'*4>flw»>Mro|

Global Tech. 1443

IntrraaUonBl -.1518

World Wide Stay 17 -OSLO

Mutual Unit Trust Managers (aXg)

Broad Sl Are., BomltehlSt, EC2. 01-6383911-2.

Natfenal PrawMent tmr. Mogre. Ltd.

48. Graceclweb Sl. EC3P 3HH. 026234200
H PI GOl.Ub, TsL —1710 75fiul -09 L70

BffMacrK

(Actare. Units) ..pZ2fi 2 354 -6.9

National Westminster (a) :

161, Cbeapsfdc, EC2V6EU. 01606 60 b 0

Exira Income

Preference Stare-

Equity- —

Irrowoe aod Growth.,

Growth

17.1

BBXehm

For Totrar Unh Trad pirrw see
. Dunbar (Jnit Trad

Trades Uniotr Umt Trust Managers
100. Wood Street. E.C2. 016288011

TUUTMnfi 1655 fi9.7ti| .. ( 517

TraBsatiantic- and Gen. Secs, (c) (y>
91-99, New Loaded M.. Chelmsford 0245-51651

American Smaller

Anxrr. Rravry. T*l._

(14_....f:

Hexagon Sendees Ltd.

4 Gt St Hriete* Umtan EC3P 3EP 01-551 0094
Brewm ImL Cr. lro-|52J) . SMI ....) 4J9

CatBda Ufe Unit Trust Mngrs. Ltd. Hit Samuel Unit Tst Mgrof (a)

26 High S'- Potters Bar, Herts.

Can. Gen Ota £16

Do Gen, Aceubi 72,4

Do. Irenme DhL 36.8 38.

Do. Ira Acorn M

GiH A Fad. Ire. Trua.ISll 27..

P. Bor 51122 45 Beech SL.EC2PZLX

Siisass -~m

Capri CJarees) Ungt ltd.

100, OW Broad St, EC2N1BQ.

Capital QZ3J

Income HM 0

North American ,—11149

Prices ao Hiy i N«d deriug

Catr, 5c bag UnK Tnret MaugmCa)

57r’6 a. Princess Sl- Uanehester 061^36 5685
gte Sceaq Cap. Fd |44. j S-3 ~9M ?.«

0162B80U

IS

SSSSSB-i

PortWloljw.Fd.

NEL Trust M a nag ers Ltd. (a> (g)
MihnnC wwt. DorWng. Surrey. 0306887766

N^S£5iPT;-^f ^0 if &

Neltiar HUh Inc §73 SS _fld a

.Neistar hBmmDouai.j56.fi sijj 4

Narthgate Urit Trust Managers Ltd. (eXy)
2fL Mowgahe, EC2R 6 AQ - 016064477

1DBLB .. -J 5.40
5.40

I

TyndaB Managers Ud.(a)(b)(c)

■ 5eb*olnc.Fa ,00.5
SetagFar Coa-n-|24j

Carr

Ctwinca Charities N/R Fund#

15. Hoorgatr, London, ECJ. 01638 4121

Income April 30.. _

Do. Actum. April 30 .1 200.1

Charities Official Invest. Ftmti$$

77 Lnatafl Men, CC2N 1£6
Ifleome April 30. _....| 169.72

.toaan Apnl 30 -| 423.50

Chwftatn Trust Managers Ltd fa) (g)
llNcwSi, EC2M4TP 01-283 2b32.

ejnP.fc&t

HK Unit Trust Mretigere Ltd. (a)
l P» y*wW s Pt. OW Jewry, EC2 01-588 4U1

jJKAj r « T SL..-r

HU Far

HKGnnrtfi - .

HK Inca MW Tst—

01-588 ISIS tflf SoBrterttf

Z£SSSlS£'=ffi

Norwich Untoa tmarance Sruup (b)
P.O.Box 4, Ncrwich, NR13NG. 060322200

Group T sl F und.-.. 1524.0 K16| - 3 .<J| SJ5

Pearl Trust Managers .Ltd. (aHeKzl

252, mjpi HWfiOrn, WC1V 7EB. ' 00^58441

Pearl Growth Fd BBt 36 Bed -02t 477

Aecum Units tTJ 5Q3 153 477

Peart iro 395 -nu 1 98

PemtUoRTa. fflj . ^£3 |S

(Acopd. UititsL- 1724 7Bj|Ia4 -550

Tfetiean Urits Admin. Ltd. (gK»> • -
5763. PrhxeB St, Mantteuer. 061-236 5685
Pelican Units.-.. — -11351 MSJuR-ftft 4.77

Perpetual Unit Trust MngmL (a)- (z>

48L «ort St, Htnkyan 7fiamn . 049126668

Growth -

l anwiti .

Worldwide Hecwery-

Practical Inv e st. Co. Ltd. fyHe) ’

44. QuontjCury Sc, IVCZA 2RA 01-6238093

A>wrtcan(;)

BPttfcd

Basil Ressureei Tit.

fSiST?, 751 -

30.1

investment Bank el ireiaad (»).'

:*si ag%y 2 t

investment lutcOgaKa Ud. (u
113 worship SL.EC2A2AB
InulAatrJfefL «L»f7«

PrariucU Ufe tar. Co: Ltd.
22^ Btshopitate EC2

InL Enn ,

(Acoan. Unte)

North Amer. Gnu . — 1

(Acorn 1 . UftteJ

Far Eanern

(Accun. Onto). .

Gift income -1

(Accbu. Units). ..•„•„

Natwai RetourCM-..

Acrum. Unte

ScoL.lnc.-, — .

Uo. Wall Cap. Gwth.

(A «ute Lhffi)

LAlMM E&KLGwth,

LUil Wad Spec. Ste.&73

.issSdi^r, __ _

JtooetFuBtf I _ —

•UnaathorMti-Osh Depoiti

TS 8 Unft Tnisfs.Jb) fc) iyV ■

PO fiOT 3. Keens Nse. Angonr. Hants. SP 10 IPG

MS Sir-:-

j-

<rn .

’li

: 6 ,

01-2478533

016286626
OW

SnuHer Co’s Trua .. ,| 29 .g
ClroulartaD Fund Mjnagrrs(g)

57.6L Princess St, Shudwticr >061^365685' Ke » Fund Managers Ltd. (a)(g)

§7 HJH-S3 m iaWbrtffeSU.EC»2«. 0162866Z6.

High Inara ""r. J2L4

Canfederatien Funds MuL Ltd. ( 3 ) iGSCSSTr
SOC ta^Lra.WWlHt 01-2420282 ifenretilrt^S."^:

CrowUiFuod BLJ 85 J! -Lq 432 Key Sma» Orel®--,

BuchtorJaar, Ltntap EC4N8BD. 20.Fe«fwrsbSuEC3 01623 MOO Betouee Urit Mgn. LM.

^ 0 | £3 ‘

la Worship SL. CC2

nun

ft. LM. I* » F«7 Ewwptfti

PrwB. PortfsHs Mngrs. Ltd. (a) (bV (e>
Hofljern Bars, EClN 2NH. 01-4059222

525SU-;---4vK

BuBfer Mengement Ca. Ltd- : -
31-45 firita Street K2 - . 01 60 0.4177.

6o.Ft. -
Inowne-

Inti. Ft

High Income.... —135.7

North American.. .....ra .4

Canadian Evempc „.W76
Canadian Trim- .. .143.5
M'J Mount High (ro*-H7. J

■eenvere . K 6 A

GH» IriiM . |37 8

*WtcUy dcatag «qr Wtarodey'

ft. In». fiu.

Wtafe Ttabridee Wrib, Kt
BrtWjUe- TO,? . 75

"rftrnd* F

in

On. Accum.,.-

T5fl Income

. Da Atcum. .,.

T5B Pacific

Og.AxiM..

TSfiScotmh., . —

§effl '(6

IteAcctm

inriw ink (a)

Warm? Strew. BeHas •• 023235231

(MUWerGfOYffi .... (452 «Ml-0«t 531

Uirit Trust Aeuuirt & MgcsL Ltd.

Be« Hs«. Kl»g waium Et. EC4R <«U>16» 4951

frmHit Food ( 5 LS 604 _ . J 472

; MOTES r

2 ncn are w. peace uateu otherow wdiweti aoti .
*£*?* S urib ra ertitf refer to U^

MUn. Y«w% (snow# in iaaovunml anew (waif
bntns euKH. a Otared press. Mdade ad .
nperen 6 Tbdain pnon. c WHd teseti « ofler
fin«. 4 Estimated g Tod»yS roenlng pnee.
•6 Osrauboojree trf UK tare*, p Periodic
otoero- » Smgfc - premium
-. •”»** *> » 0fto*4 Price inetefes afl npeotes
. «otr agent’s cammtelon. y Oftereo price u*Jua«
^ eraerMS tl Mwtat tnrovgp managers Preutan
r A ***?*** 9ro»i * awwW.

^ • s ? ! * w ritnv -t»4 -t-UeobwvtiiBA
U D to arAtidtie to charitable botiro. .

j. \

■1 -.

37

Financial Times Wednesday May. 19 1982

J *U*ey life Assurance Co. Ltd.

1 Ms*. FaursOwtf*** ect. , . ai-ataom

[ PraflertyFnoi _L'~ ‘

Equity Furrt fl

Pmnr^yflrr [

tlaiatvto
s^faoive Fiwj__._

Money Fund...

i Ctwierjarfe Fund ,

“-“p.FdLSer .4 _■

■_ f wixsTwareri

- • : grito. FO-Sor.

Kaafc

. v:Hr* £RS»!:

. vF—f fi.ed |hl R 3 . Scr.

-;» i

American Sef. 4

HjqhUsc.Ser .4 __

Inscxedltiu. Series 4

Eertjcn Property —

Pension Eonxy..

Pension Swcthr. •

Pennon ilwwoisj

Pcnuoa Security..

Fenton Fired Int
Pennon Indexed hw.

INSURANCE & OVERSEAS MANAGED FUNI

Granv 5 k> M en a yam ent limited .... .
P- 0 .Em 73 / 5 !.Hefier.JwfeV. , 05 ?« 7 W»

Gtani'Je Im. Tst- . v ..g 62 r_ ^<ejl ■■■■*

Ned

48823 ZJ

J =

•:.» Ahsaiy Life Assurance 'Co. 1 M

31 . (Hd Burlington Sl, W.l 01-4375962

V.v

**.“ .t

3214

Krtt.

15&2

1405

Equity FO Ace.

"■ FluerflnC Act.

• • GW. Money Fd. At

.: lnU.Uan.Fd. Atm _

- •• tad. FuL Int.FcL

.• J . Pnta. Fd. Acc_

• : U'delny. Act. _.,

EiMt«Feg> 4 AK..i
: ■I- . FlusR.PeaAcc

• G'WtMOn. RpitAae.

.'{ ' imi.Mn.PnfdAn

WBSSusz

AN CV Life Assumes Ltd.

ZA Prince a* VtMesfU, B’lmUi.

Hmaged Fd

Money Fd I

Entity Fd.

Fiwedlnt Fd

Property FVL ...

Managed Ren. Fd

Equity Pension Fd. ....

Fixed Iffl. Pens. F tt
Hie*i Yield Pens. Fd. .

Money pension Fd

PityntyF^isniFd.

FTroafcmd .

AHEV/ftanAigtan
American 6 Cat. Fd.

Income Fd

Ml. Growth Fd
toiuJ Fund

030376212 ?

Pens. FwL lot. inH

Pent Money Act —

Pent Honey too I

Crater .fonrancc PlC

Tuner Hat, 38 Trtany Sq, EC 3 N 4 DJ
Growth Prop May 4 _|HXU 130
OwwetJ Pens Apr W-LU 2 J

Eagle Star Insnr/Mifud Assar.
l.ThremtoeednSuECZ. 01 - 588 X 232

EagtoMid Units 176.9 79.71 - 0 . 6 J 6 JA

Equity & Unu Life Ass. So e. Ltd.
AoterdiamRoad HHBiWimntte. 049433377

useev at;

SSKSSSftss:

MestjMmdSecsFM.

Gtd Decoca Fmd

Nth. Am-rica Fund I

Far East Fund j

httndaid Fuad

MboedFond

Equity & Law (Managed Rnrit) L td.
Aramtam Road High WycSRte. 0494 33377

lncLPeo.lmMU.Set. 1 DL 4
ind Pen. Overseas .... 152.9

Ind. Pen. Cash. 1342

Ind. Pen. Batmcnl.. 152.9
lndPm.Dep.Adnw.. 134.0

Life Assof. Ca. of Penn syl v a n ia

8 . New ftd., Chatham, Kent Medway 812348

LAC 0 PlMs ua ^_P 1.72 mu ..^J _

Lloyds .Ufa Aoaam
2 Q, Often St, EC 2 A 4 HX 0 J- 9 ZQ 0202

ssas-i “

Norwich Union (Munace Grotto uFlmiSr

PO Bax 4 , Norwich NR 1 3 NC. 060322200

0403 50255

Barclays Life Assar- Co.

253 itamtordRd.,E 7 .

Bnclayboncti R 72 J

Equity

Mi«h«l —

Imematnrai

Haraged

Money

Praperty

Man. Pent Atom

Co. initial

Gilt EdgPentAcc. ....

Do. Initial

MOwv Pen. ACC

Da. initial

1703

132.4

108.4
143.2
E 36
1752
177.9
1542
1599

BS

Ltd.

01-5345544
13121 -OJ —
179 J - 12 J

139.4 -as
1142 -02
156 X -02
140.7 401

M 7 J — fli

112.4 -07
IhOi +07
lfU +04

f>t 404
15 +02

z I

FaraBy Assurance Society

hO EM Strew. Hortfcam.

Fam*£an^r_-:

Faniy D. Fixed Im. -
FanMy CMtal tUhgcL
Family Si ll.

G.T. Management Ltd.
l^tegpnaq, Loodon, EC 2 M 7 QJ.

OJJ>tar, Bond Fund . |%2 1034 |-U| -

GT Pin N Am Fluid 995

GT P»n UK&G.E. Fnd 9 R 7
PtaWWdwdrFod. 917
.* Pension BndFML 97 J.

Gt Pen High YW Fd- 973
GTP«w Far EM Fd- 9 L 5
GTPmN.Am.Fd..-. 102.8

W. 7 Ifli —

10 ZJE -12 —

1025 -2 —

&1=S£ =

105.9 -L 4 _
9 a 3 -07 —

Bjn*****

BWBsr-*

Flwd InL Fund

DepKH Fund.—. _...

Nanrida Own Uh Imom
S odrtr Pcinaowia i
Fined interest”

assapr-

Mbcrd*.

SEl

m

Mur. Units May ll!!^* ml 1- J ... |
Pearl Assurance Illeit Funds) Ltd.

Staftdirrf Lite Rsunna Company

5 George Sc, Edinbugh EH 2 2 XZ. 0 XL- 22 S 1
Managed 11413

SS5Sr=^i:iS

wumMional 1 M .7

Fixed Interest — J 214

SffJ25b^:Wr
tSSRlSgSg-- m

PmHui eSSS? - - I^o

Pension ln(l 149 n

Pension Frihrt 1269

i hit* UAed 9 L 0

Pension frxtx UiAeOWLfi
~ Pension Cash (1203

Blshcpsgate Camwotitty Ser. Ltd.

FA SoxAF.DaiBlas. le.H. 0624-23911

RMAC~ May 4 .—..JS 5 U 9 WM-affif —
-UNT-*Mw 4 ..-.Ki 016 - -iZg( .—i i-fiB-
NtetO“»fe*«....kl. 3 M 142 ^ ■ ■ - —
-IPSA- April 5 . ^60 lO^y . 1 — .

(hiewd saw * $S 5 md-r£l. New »<■ Ane 7 .

Bridge Management Ltd.
GPO So* 590 , Kong ten g

Gufaness Mahan w. M«n-
PC 1 £ 8 , Sc Peter Pwt, W 81 1 2 ^S'

Iml. Fued B».

C Slorting EqMwtmt pQ .7
5 .D.R. Equixdeai — r
Prices at May

Kwba Pacific Fund MgniL Ltd-
2110 . Conuusht Centre. Hong Koog

'SSfiWSfcBS” SB::d =

Mamhnn Fd. Mgn. (C:l.) Ud.

— P- 0 . Bax Bo, Guernsey.

120 - -

^^ReserveFd..

Sun Affiance Insurance Group
01-405 8443 . Sun Affiance Home, Horshan

' = fiSWSBfcrjrf"

— ProoeoyFiml — — -

— IatetiBUoaAFa.

Food-. — —

Fund--...

I May 18 - 9 —

2 S 2 Hl*> WG 1 V 7 EB.

Inv. Pros. Oist..— ....
im. Pino. ACC— —

Inv. Eaj*ty.. . ^

Ire. BaZtgrd

Pom Ammra c f lOntt Liated Piwmi) lm.

Ret. Managed... 0ZBS Ua 3

Phocufci Assurance Co. Ltd-’

4 -S KtegWUlaue St, EC 4 P 4 HR. 01-6269376 Inoex LUited ® 6.2

mate — m m=.iz

Pioneer Mutual Insurance Co. Ltd.

16 , Crosby At. H. Waterloo, fpooi 051-928 6655 B 5 S!= 7 —

“ 121 . 0 (....J ~

SSP-

Ixtermiboal May fit

Pioneer Md. Md. Fd.|U 4 J)

Ptenned Satrings Group

68 , East Street. HorSlOT 040350255

5 teMmraed- ...fei

Pension Managed.. _,F 7 SJ

PTeeihm Lite Ass ur an ce Be. Ltd.
Eastdwser Hse , Haywards M MW, 0*44 58731

aagffii&je
Saa*rj=P*

Wmagrd -
Prtj^rty May 12 . —

Britannia Irrti. Investment MnguL ltd.

fssi&Ssr^ ^ st

ii < nnlhr IkuiaiiiBliil Fads:

. . g3dW p -^Pi "«

040364141 UiMTSa) Grwtto Ftxid |$ 0?£5

277 a -211 — iSmUr income Fd 10785

154 9 , -Did — ■ Dl Wte W Fudl

tnesonemv-JflT^

lig-OJI —

Ausraftao Perf. Fd. - 7 JJ
Far East Fund 93.6

tsipri-M

U.K. Growtn Fund — « 2 i

12.94

400

. Next dfa 6 rg May &
charge «i tmah orders.

: J =

- Sun Life at Canada (UK) Ud.

B®fe=-3S

internaliotd Eqatty —193

Uiq+UH
m 3

ji

1 U

+irt -

Z 3 , 4 . Cods aw St, SW 1 Y 5 BH
Maple Leal Plans
Growth Aceoont- —

MMaged Account —

Equity tanoM-

Managed Fd.Accnsn—^.

Eqnrty Fi Accua.. — ? 7.4
Prajseny FeL Aeson.. g 3
Fixed ltd. Fd. Accm. 94 0
1 ntnl.Fd.Auaw... — ? 7 a

SSSJliSteBi

Pens. MgcLAcc. Accm

01-9305400

Epepal St£Tfigid-..

Swriina laatar Futxr.

TrawyatTna

tstnl. Bond.' i

Lt S^ ! A r S , JS-"

'“-^srari

tEvdedrs lo«U

HeDrimen Adam. (Guernsey) Ltd.

7 Hew SL, 5 t. Prter Port Guernsey 043126541/2

ftSE&rs£SSS±fiHfi ^ =

Weekly Deaihgs.

HendBKon Baring Group
831 . filaowster, 11 , Pedder, Hong Kong
Assir 4 lbi* ... —5766 82 g .....

JepanTitii 6 tot 17 ..B 1730 lg 2 n+QJ 9 l
Jzpan Fd. May IT. — Ij 2 h. ll
Llais. £>ng.M 3 « 4 ..-f!!&Zi- W
Pneihr Fi' ■" '

Guest Food Man- Ueraey) Ltd.

P.O Box 194 , Hefler, Jersey. QS 34 Z 744 L

! Stg.FxtL 1 flt-MS 5 nor-

ind! Secs. K 903 09

. Ind. Bd.. __B 0222 08 ,

Aka oa MbTBT Next draffi®

Guiftcr/Hdnohl CpeiraoditfK

31 - 45 , Gresham Street- EC 2 V 7 LH. 01-6004177

-

R 8 C bnestnmt Managers U noted
PO Box 246 , St- teir Port. Gurnsey. 0481 - 23021 .

BSSfii# ^

Paml npi Managers Ltd.

PjO. Ex. 1549 , Hndta Bermuda. ( 809 - 29 ) Z -7979
£&tliCOlSiy 4 ..-|SL» 9131 . \ -

fttctanemf Lite Ass. Ud.
4 H« Street, Douglas,. LO.M.

J 30 .W

PrcBntary Charge.

SaJ .. ‘ I -

— Sun Life fMi Assurance Ltd.

Black Horse Ufc Ass. Co. Ltd.

71 , Lenten! SI..EC 3 . 01 - 62312 E 8

Assteurazjoni GENERAL! S*JL

117 , Fendvach St, EC 3 M SOY. 01-4880733

(Ml. Managed Bond. .IML? 14921 i -

Blar> Hone Man. Fd.
Managed Inv. Fd.....

Property Fd.

rrxed Interest Fd-_.

CashFtt.

liKome Fd.

Extra Income Fd. ...,.
Worldwide Growth Fd

BBlaneedFiL. .

Smir Co's S. Recv.Fd^lT 7 .M
Int Technology Fd. ... ^

Nlh. Aner. &Gen.Fd..,

Enemy IM.R 1 Biil

Pacific Basin Fund. -^ 5.97

[l3qJ| 1 'll7.47j

5 *W .....
J 656 ....

SI ~

87 .n ....
101.(«

General Partfofio Life ha. C. Ud.
Creshraok SL, Chestxad, Herts. WUtamX 319 n
Portfolio Fd. Acc....[

PurtfeStoFa. Inn..

1928 -

M 3 _... -

Partfofio Fd. £*>. — 109.7 . ^. —

blSc.- 501 6 LJ -

IL-feOI 5571 .J 1 J -

London A’deca & Ntbn. MU. Atenr. Ltd.
229 Ktegmy, London, WC 2 B 6 NF. 01-4040393
■Asset BvAtef 15&2 581 ] _...J -

London tadeimUty & Gnf. Ins. Co. Ud
18 - 20 , Uw Fortney, Reading 583511 .

sarfe-if 7

fixed Merest -I

Louden Lite Linked Assar. Ltd.

100 Temple $L, 8 rlstoLBS 16 EA. 0272-279179

Wfc._ "" '

Pispeity

Prop. Equity & Ute Ass. Co.

42 Houxtehlttv UxxMp EC 3 A 7 AY
R. SIBt Prop. 8 end ...| 245.4

Property Growth Assar. Co. Ltd.

Leon House, Croydon CR 9 1 LU. 01-6800606

" " ' JM

107 , Cheapslde, Londm. EC 2 V 60 U. 0272-299524 Buttress

Brown Shipley Tst. Co. (Jersey) Ud.

P.O Box 583 . St Heller, Jervy. 055474777

4 |-:T= H

Butterfield Managesnent' Co. Ltd.

P 0 . Box 195 , Hamilton. Bt-rxaxtt.

Bmrren Eouhy B 414 438 ! .. J 135

Pucinc f 4 May 12 . _

Bond Fd. Marl 3 . — ,

•InddPW V

HUT Samuel & Co. (Gaemsey) Ltd.

8 LeFcter* Sl, SL Peter Port, Guernsey, C.l.
Guernsey Tu ...... — (2063 220 . 7^-281 337

Min Samoa! Investment MgmL Wd.

P 0 Bar 63 , Jersey.

UK Equities UT I.HL

iE&^Vhaob

RatkscbBd Asset Maarageraent (CJ.)

P.O Box 58 , SL JoBamCt, C*mn» 0481 Z 633 I

51 c. Cmnmodtty* .—

—OX. tef
Bet Fimw .. .

S 3 SI&:

Bo.- 2622 , Eero, Swajetted.
H.C. Overseas Fd IS 20 M.

053476029

::::j df

Teiex 33425

01-621 1124

I .- .1 — Property Cap

Property Ftni. „_J

~ sssrsflE^

Portfoho UtoiAHI
Portftfio Mao. IrdL-

ric. Fund (A)

tat Fibxj.

. NaLFd.CA)^

Inresunent Fund — _
tnaestmenl Fixx) (A)
Ecpirty Fond

FSdtjrr:

gsiasirsL"
*$&*'*=*

Growth & Sec. life Ass. Sac. lid.

43 , London Fruit Exchange. El 6 EU 01-3771122

OSttSrd

G.&S. Soper

Canada Life Assurance Co.

2 - 6 , High St, Pooen Bar, Herts. P. Bar 51122

& irjz

Canada Life Assurance Co of G. Britain

2-6 High St, Potters Bar, Herts: P. Bar 5 U 22

MtnCKrino Fand —11346 L 518 J I _

Pronely Pen Fund. ,.jLB 25 LOao! J _

Index Lnhd Pen Find |1073 Lod J —

Cannon Assurance Ltd.

1 Olympic Way, Wembley KA 0 ONB.

EraxtrUmB 1

Property Units __

EcstUy tJond'E«C.._.

Prop. Eond,E»ec. !

Bal. BdiE>ec/Unit —

Dsposit Bond

Gnanfin Royal Exchange

Royal Exctamg^ECa

07-2837701

307.81 — 4 _

Equity Accum.

PmaxyAcam.

Uud&xun.

aid Equity

2 nd Property —

2 nd Managed —

issr

Do. Acorn ______ 1155.4 163 . 7 ) .

intemttlOHd WfaaJ-lBAO 14 Ll|

EX). Accuoi 1 ) 44 j. J 51 . 7 I

Property Initial 13343

0 i!p 5 ?iSti 5 ~riZruo 2 ip —

Do.Aocum._ ( 323.9 330 . 4 ) — —

GBE- f teMoM Wubb ii u i f Ud.

Pens. Managed biflai , 12433
Pens. lAsaged Acc .4

2nd Arnencart-..
2 nd Inti. Money...
2 nd Index

2 naiicj*aiwFw 6 /ta:
2 nd Index PM& 7 ACC.
L 61 ES.I.F

Li ESI. F. 2

term

MexedSan.

UedeoUte HraMM IM.

WfF m

London & Manchester Gp.

Wtsdade PerV, Exeter EX 5 IDS.
fewest. Tst. Fd. Cm...
imest.TsLFd.dcc.-
Pr^ertyFwdQffi—

Property Fund Act —

Rcribie FuodCap.— .

FbaedinLPd.i
Equity L.__ .

KSSfsrj
aSS^StfS^"

W^/sT?

z isafflcs .a .
-

fe£SiS&n= I

Co«r. Pens. Fd.. Zi]

Cm. Pre. Cap.liL^.

Man-PenrSi ,

Man. Pens. Ca£. w. J

Prop. Pens. Fd

teWML

ssmE

Gilts P«s. Fd. Cap. _
Equity Pens. Fd...
Eqeiiy Pens. Fd. Cap.

2428

Prcperty^Acc — ■

F^'l^ot'Cap. . 1 "

F)wd Interest dec —

Casa Can ...

Cash Act. — 1

Imertatmol Cap..—

International Ace..—

Arne man Cep.—

Anwttito. -
. _ Far Eastern Cjd ...

- 3.4 — Far Eastern Act...

Distr

1 n - l7 — ftrris fDr'MMM
♦G-S — Pens. Managed Cap.

I + 0.51 — Pm Mauagrt Act..

Pern Property Cat). ..

l-os -

- teftfftS-sr.

— Pess. F. Ivterrst Acc.

— Pens. Cash Cap

— Petrs. Cash Ace.,

— Pens Ibm. Cap

— Pens. IntaL Arc. J

— Pens American Cep..

— Pens. American Ace..

— Pew. F* Estrn. Cap.

— pern. Far Earn. Ace.
z Target Life Assurance Co. Ltd.

. m

Prices at Ma< 10 Next sat. Bar

252 | I 10.43

Next sat. day Jn*-

Limited

„.ling—

„..ks Francs — .

U 5 .S 25 .

Hsspk*

tfOea&flm ewry week.

Save & Prosper IntenHtteMl

pSf Bk%, SL Heller, Jersey 0534 73933

Fhad lotarest Fwts
De u lS LhJia di Bd.**t

Dfir. FWLIiX~f & 7 ,90

SL F l aed**** t [

Yen Bond*** r

CAL Investments NoM) Ltd.

16 . St Gwroes St, Daocfcr.lOM , ^ CW 4 2 S 031
Eai. Crnsty GBracyV E L 144 ri-fiiCi 4 ET

CAL Sinai** |T 7 6 ^71 Jl —

Next drain cay *J'm» "June 14 .

Cagdirax SJV.

P.O Box 178, 1211 Gene*? 12 . 0)94122 466283

Capital Asset -Managers Ltd.

Bermuda Hse. Sl. Julians Aw, Sl. P*J*r f^ri
Guernsey C.l. - 048126268

The CwrencvTndt — H 03 0 IOT 0 | . , | OW

Capital international Fund SA

43 BcnlewcTd Royal, L u xewbt x » >9

Capital lot. Pond I * 12555 | .... J -

CharteriMiise J aphet
1 Paternoster Row, EC 4 01-2433999

BK^zzzifcs

■Prices at Kg fi- Nen a*, (ter Jyo* h... .*
Charterhouse Japhet Currency Mogf. Ltd.

m-

Providence Capitol Life Am. Co. Ud.
30 Uxbridge Read, W 128 PG.

Mao. Find la

Man. Fieri Cap,.,,

1.7 -

- 1 - 0 . 4 ) -

— Pens. Eqiaty (nhial — ;

— Pens. Eqaty Ate. —

— Pens Fxd. Y*. InHUI

— Pens. Fixed 4 nL Ax

— Perns. Ini Iralial,

— Pens. inti). An. —

— Pens. Prop. Inititf,..

— Pens. FVop. Ax.

— Pem Depos. In -

— Pens. Depos. Air.

— Hufa en Life Assurance P 4 -C.

— 70 >d PartrLane, Londoo, W 1 Y 3 LJ. 01-4990031

— Fixed (*. Cep- (2696 17 M 1 — J

“ Equity,

- MAG Group

- Three Quqs, Tower NM. EC 3 R 6 BQ. 0 V 6 Z 6 4588 .

May 17 .

Capital Lite Assurance
Cooeaon House, Chapel Asti Wton. 090228511
I .... I -
9020 [ _.il -

Key lfiw*t.Fd._. [

Pacemareriiw.Fa.

Fm Ciorierhtm Rtogoa see fetfrie ntflh & Ute

Chieftain Assurance Funds
11 New Street. EC 2 M«TP
Managed Growth 1 —

Managed IilWt»

Iro^Tiiatioiial iz> |J

Hwh Income —

Income u Growth —

Bask (fcsmirt® J 315

American la) — — — — H 4

Far Easasm 12 ) J 34

tolr

City of Westminster Assurance
Ashton House, W,Siroury Bontefind
Milton Keynes, MK 9 2 LA.

BEte=w q

Matey Find 1659

Grit Fund.—— 94 0

EiacfcGoMFd.

PULA Fund — ^ 8.0

Sac. Prop, unite.--, raip-
- First Unit Fund- 2093

Pen. Prep. Arc. 48 LB

Pen. Man. Cap 3243

Fen.Man.Acc 4705

Ptsr.GrtEdg.C-y 1720

Pen. Gat Edg. «x._ 7073
Pen- Eq. Cap_Z-_ 323-4

Phi. Eo. Ate: — ; 1471.4

Pen.

^m^=z sa

Pen. B 5 . Ate. , 1234.4

— ten. DAT..

A mettero Foxd Bondi
American tec. Bond-
Anstratada Bond 1

bM

FxrEartt'.iM

6 fltBond— J

HMYieMBand I

feS*-LMcdGtBd_]

DM.

308.1

0908606101

Hearts of Onk Benefit Society

129 , kjngsway, London, WC 2 B 6 NF 01-4040393

ESS3SSz=E& u2|:d =

Henderson AteMiibboliou

11 Axmin Friar, Union, EC 2 .

Hi# Income Fd 30 iB

GIB Edged Fund 855

CapM) Growth Fund. 103.9

Mao. FimdAcc.

01-7499111 JteLFa.lwl

_ Prop. Funfl Inc..— .

_ Prop. Fd. Cap

Prop. Fa. Act.

Prop. Fd. Inti —

_ Ptool Fd. Ira ,

_ Fixed I m. Fd. Inc. — .

Z Fixed I re. Fd. Cap I

_ Rxed IhL Fd. Ace.

_ Fixed InL Fd. Int ,

Dtp. Fd. Inc

_ Dtp. Fd. Ate

Z D«.Fd.!nlt

Z U.K. Equity Fd. Inc. -

Z U.K. Equity Fd. Cap. .

__ , z U.K. Equity fd. tec—

rtTSSfimSlimM iferaW 014 * 9 m.

Provfcxdai Ufc Assurance Co. Ud. &IKSS-SS-J

222 . Bhhopsgme, EC 2 . (ttW *■» ft Bg g; fc;

hd.Pns.Fxd InLAo— '

.\SS^sosz&

[-071 -

^3 -

Fxri.Trt.F«i — r

ImenoUuHJ.,

High Income..

fe^An»rieaa___r
Special SKs

-Ate...

Pr*. Acc „
Property Pens. Acs. .
«l Im. Pens. Ace-
Eantty Pens. Acc.,
ter

-04 -

Bs-Sfeter-

ReL Plan Cap. Pen—
Man. Pea Fd. Acc-
Man. Pea Fo. Cap.
Gift Pea FIAclL

Grt Pm Fd. Cap

Prop. Pen. Fd. Aoz_
Prop. Pen. Ffl. Cap — 1
Guar. Pea Fd. Act.
Gar. ten. Fd. Cap—
Irtex-L. tea FdSp,
md«rt» PWFd. Act -

Sterling Fund

U^. Dollar Firt,— J
Swiss Franc Fixxi—I
Deutsche Iterk Fond

— Central Assets Cmrancy Fmdt Ud.

...zz-i

S* Francs. 1

Fr Francs

_ P ‘ _

- SDH's - _...| 254 ia -

*001 — ■•
+ 00 ) —
« 5 h -

- &8 r

+009 -

CtmvtM CoffwioiBtiK (Isle of Man) Ltd.
29 , AIM Street, Oengias. lp.IL - 062421724

ttmvxlV Metal Tnet.nJnS L£W{ - -f JOT.

IiItI ::::.] too

ComMI lias. (Guernsey) Ltd.

P. 0 . Box 157 , Sl Peter text. Guernsey
lotnl. Man. Fd. J 2205 »aOf —

Cortexa htteraxtlenel
10 a, Boolevmd Royal, b m * m ho tu »

Cortrxa lotnl I SSL 44 1 - 0 . 93 ]

I. C. T-vst Managers Ltd.

10 , SI. G-orge- 5 L, Douglas, toM 0624 25015

Int. Co.-mpd«iisT«.| 95.3 1010 ] I —

Next dealing day -hoe 2 .

IGF Management Services I no,

Co Pecrarars, POE or 1044 , Carman Is, BWI.
lr.te.oi Gold Fund ,.|S 59.90 6289 ] \ —

N.V. Intcrbriieer
r 0 Bar 526 , MIL HoHand
EvtierairWOWerPte>| DEL 7168 1 - 031 ] 279

iRtsraatloaid Bond Trust
?. Bcalexard Royal, LintrmOourg
Class A NAV May 18.1 W 78

Class 8 NAV May 18.1 S 10 J 3

International Pacific fax*. Mgmt. Ltd.

P 0 Boa E 237 . 5 b, Pitt SL, Sydney, Au*L
JdKritn Eijrtry Tst. IAS3.47 _ JJSj J 6.70

Investment Advisors, Inc.

First Imenulional Plaza. Houston Texas.
Firwntc Invent. Fd. —I —

UK A jerti James Fmlav Tel; — .

SirriAerg Thnw Ctvte Tel; 01-247

Iftviefa Investment Hamgenzet
. 2 Clacds Cross, St. HeOer. Jersey- 0534 73741 .

Besa=JV

JardiK Fleming & Cn. Ltd.

46 th Fiur, Connaught Centre, Hong

J. F. Jacan TsL “

Do. (Arcum.)

J.F. Jatun Small Co. .

JF Japan Tcchnolggy.

J F. Easiem Ts rfiSra.M —

Dp. (Accum.)

J.F Par. Sea. (Inc.)

Do. (Aconx.)

J.F. IimI.Tsl

Dp, (Acoim.) —

J.F. S.E.A

Do.lAcnim)

J-F.PWI —

IF. Cur.WFl(lrxz)

Do,(Accum.l—

Japan 6 Pacmc CntTa ,

Australia Tst. !

.=> I

SSRS=l-zffli

Mrttfcmrxn c y Bcmrrr Famtt

£ Sterling.— — ....
Yen ; 1

SL

Schroder Hfegt- Service* (Jersey) IM.
P.O. Box 195 , St. Heller, J««y. 053427561

StertinaMwFd-^ZM^Jga^SK] -
Hen snraenpaon illy mmf a

J. Henry Schroder Wagg & Co. Ltd-

120 , ChoMSfele,. EC 2 . 01-588 4000 .

aibitiRP-

RW -

n —

Kong

Sthndar Unit Trust Mgn. InL Ltd.

Box Z 73 SL Peter Port, Cnermey. ■ 048128750

f gaasbzzgj . 7 -

Sc ri m ge our Kcnp-Grr Mngat,' Jersey
IChmtng Cross Sl Heller, Jersey. 053473741 .

1F

Gilt Bond Ez ?-4

-'•'‘I

’-(

Ej «

(Jersey)

053427561

UiUt HS~oher Pricrs no? ffi- 5 w 7 653 L YtnFUtl
Prudential rniTlnar Limited Transia towa tlnna] Life Ins. Co. Ltd.

Ho&xxn Bars, EC 1 N 2 NH. 01-405 9222 55 - 57 , R^fi Hdborn, VOV 6 DU.

Craigmoimt Fixed 1 st ilogrs,

P. 0 . Box 195 , SL Heller, Jency.

“^“WcrfS* JSS-H" 1

DWS Deutsche Acs. Fr Wertpapfersp
Granr 6 wgweg 113 , 6000 Frankfurt
Invest! pH 3059 3 L 95 J- 02 CJ -

Delta Group

PJL Box 3012 , Nassau Bahamas
Defta Inv. May 11 1-10 29 . 3 . 45 ) ... J -
lortfgn Ageits Wentuort Bemen. Tel: 01-60 SOI

Leopold Joseph A Sow (Guernsey)

Hiraei Cl.Sl Peter Port. Guernsey. 0481 - 26648 .
LJ. Sterling Fuod..-.|n 4 » 14891 -...J -

L J A S Ceieney Fkmd

Tetephsw Manager hr bust prim.

For xfcm 1 .

Britemde InH. bar.

Klemwort Benson Group

20 , Fenshurth Sl, EC 3 .

Guernsey Inc... fB, 0 _

Do.Atnm.— — I

IFd.

(&- 62380 OO

K.B. Eurobond Fd
K.B. Far East Fd.— J

8000

— Series

— Series

SflF^r* =■

1 Fund-

— r 435.9

Lite lam
Sl George's War, Stevenage.

B8Sf=f '

Special S&flrioacRl > 1203
North American Fund 12 b. |

Far Eea Fund 135

Property Fw«L 1073

Managed Fund 1 W|

Deposit Fund — . W 03
PrvraeRsdmL Prp .— 1908

5 oc. Fin. ViNi riani.ihvr-r •

Fund currwiriy dosed 10 new nwestmenL
PtrtxvmUnhs.— — I 2»3 jii.rr

ia®fiKHi 5 S£ia 3 fr t»s£

Hin saomri Life Assar.
NLA T wr, Aridfeaunbe Rd.

International Fimd —

Clerical Metfical Btenaged ftfifU*

15 . SL James's Sq, SW 1 Y 4 LQ. ^ 01-930 5474

Mixed Fund RJQfi — 1 “

Cali Fund — 1 104 .^ 104. 91 .-.-I —

Prices May 32. Unit Ueahuss on wedneyMys.

Comtsrcial Unton Group
Sl. Helens, l.JJmtertfwfL,

. 126.93

03-2837500

-'*-^3635 I :d =

YiuAiX.KJy

Camd Fund,

Income Fund — - —
Property Senes A —

Property UtfB

Ffeencd Fund-. — —
Managed Senes A —
Mmaged Senes C— .

Mamed Units- E

EBqh Yk 4 d Fund P

Money Series A '

Money UnRS

Confederation Life litwanca Cc.

50 , Qancerv Lane, VJC2A 1 HE- 01 - 24202 B 2

InL Fund — -

indexed Sec- FO fe 9

European Fund - 0 OL 6

NsMrttesouroesFtLf

Far Eaa Fwid.

Spec. Sits Fin! — —
Pension Fund Price
Property Acc.

Equity Fund.-

Managed Fart.,.. —

PIP Fund — — — - —

Psnal Pen. »«L_
StaUquard Mao. Pot.

Group MiWi Pen. _z B 463

Fixed Im-teOL {KL 7

Equity Padion. —

Property PwMn

454 4
3105

Internationa Pen 197.6

Cash Pension.

SBSSiiaSSSBj^T—

'SSSSiaSIficfifti S3 :::::] =

z Baottzzn
z 2BJS2%zr

_ Guaranteed Cap. -
_ Equity Acc.

z gS?.Stez^_ n _

_ Fixed Int. Cap- ^05

__ Indexed Secs. Are— gB .4

_ indexed Secs. Cx>—t 953

Refuge lavestneots Limited
103 Oxford St, Maodxuer

ttSSzzzzzSK

ReGooce Mutual
TurtndgeWeA*, Kent

1

— i Z Royal Life insurance Ltd.

Mai

_ Equity Fd. _
S**s£Fym})Afi~ l

£SiSS&z :

Tuftp Invest. FB

TJIp Managed Fd. -
Manogedlnv. Fd. lot
M 2 naiHdi 1 w.Fd.Acc..

061-2369432 ^ fcl

0*8317481 Deotscher humtu u nt -Triatt

Postfach 2685 Bieftergasse 6-10 6000 FrvAfurt .
irt^SwfomfcZZ^tfilw U^+ 0 ^

Drexel B ran ha m' Lambert

77 , (jeodun Wail, London, EC 2 . 01-6203200
Winchester Diversified Ud. NAV April 30 - SK 3 &.
Wrtcheser Ovmseas Ud. N A V Aprl 30 U SS 33 X 49
Winchester U 3 . Reserves Lid. Current yield 13 . 9 %

. — 1 nLBd.Fd.lKL.
K.B. InL Bd. Fd-Are.

KjJ. Inti. Fupd^,

K.B. Japan Fund

K.B: Sierf. Asset Fd. .
K.B US.Gwth.Fd;..

USSSSSfcr

: 734

i 4 jatf+ooa

hd! 2 j

Trident Life Assurance Co. Ud
London Road, Gloucester.

=

New HaH Place, LMtrpooU 693 HS 051-227 4422 JS ^ 0081

Rural smrtdftf. B3ZA S45.9f -Lffl — ' ElSjszr

OOSSks d&

Sam A Prosper Group

4 , GtStHrten% Lndh, EC 3 P 3 EP.

Wgzz:
ESStzz

EquttyPwtFd

+OX( ~

Growth Are.

Pe«. Equity Acc

Pens. ibm. Are.,— .
Pros. GIltEdged Are.

— Pros. Gtd- Dep^cc.—.

Tn Inv P 3 o^lll'Z{ 5 ZjO

^ 3 ::::

Tyndall Assraams/Pansions
01-5548899 W, Canjnge Road, Bristol.

Dreyfes htecoii ttoent al lav. RL

fuc-xuux p -°- R* ^0112, Nassau, Bahamas.
04523654 ! NAVUayU ...| 26 J 9 • 20071

640

B— tf> Layrrie lav. Ugt Ltd.

Victory Hse, Sl Peter Port. Guernsey. 0481 28034

BtiSSSta z=»

Z Emsan A Dmfley Tst BSgL Jrsy. Ltd.

P.O. Box 73 , St. Heller, Jersey.
E-D.I.C.T. 1118.9

The Engfish Asadatipn

4 Fore Street, EC 2 .

E. A. Income FdL* — f &42

ttBStdR*

Wardgme Cm. Fd.** .10670

053473933
12 ftSl..-.J

0272732241

•Next deafens May ». “Next deling Uiy 28 .

016869171

Schroder Life Group
Enterprise Howe, Pm um o ol lu

RSfa=

Enoftage Manaperaent Ltd.

Grenyffle Hse, SLHeBer, Jersey, C.l. 053476007 .

mffiSzdW = l=J =

Eurobond HoMHips N.V.

Ptetermaai 15 . WlPmstad, Curacao.

z aB 5 SS 5 «»“

Loodoo ECS

950

_ Managed

Overseas .

0705827733

+03

+ 0.1

Comhdt Insurance Co. Ltd.

32 . Gsrnhdl, E.C 3 .

ss&h w -

Man.^feM^:

016265420

CTiS Spec-Ftt,

Credit & Commerce Instawce

120 , Reoert Sl, LdmtarWlS 5 FE. 01-4397081

CCI Deposit I Fwt-
rFnd..

FllOffi

llLLO

CCI Fnerfh*. J Fbd. _ 0 150
CCI Mngri Fod — ,_*,p 67.0
CCI Blue Chip Fd. „g 7.0

cci imLFd_. pao

ca High Income FA.P 7.0

I Property Fd. .

mo

1165 -
mo ....
1226 ....
177.0

:::

ffl ::::

Crescent Life Assurance Ca
14 taw Bririje Stroef, EC 4 VGAU 01 - 3 S 38931
Managed Fund.-_-

lot

UK Equity

^^feSrtlZZ

Fnen (fit
Tokyo

American

Irueniatipmd-. M -7

Rr-^rrei 1 MJ

High DMritoHan 99.9

PajiiBH— r ,

SUIiSito Woking 6021 1 XW 048625 fl»
■' W rtT is 117 Jl -ill M.»

iora.ru. 16371 _ 6 (

j’dFtL toil- - 1137.6

l Fd loan. — li^J

Imperial Life Ass. Ca of Canada
lirperial House, GoAdfatL

sssmndffi

Fhoedim. RL- -
SeQxvCap. Fa.

Emitty Fund-

Property Fund —

Irish Life Assurance Ca Ltd.

BKihKHi House, 7/11 Moargate. EC . 01^68401

BSSfeEffi
ir^ly m

Kina & Shaxson PLC

SZ CornhBl. ECL

Bond F«L Exempt. —.HS 414

1 mkro Life Atftf. Ca Ui

^ S^'Fd”l«.9 ffl J -

ugd & General (Unit Araur.) IM.

SKi SU4 »M 4 -

Do. town. ■; 13L?

Erarty IrxuaL 17

Do. Aremn.

Multiple Health and Ufe Assar. Co. Ltd.

Centre.

msk=$i = i=d =

€006887766

N:

016235433
E 68 H 15 a -

MEL Pensions Ltd.

MUton Court, Dorirtag, Swrey.

Nelex Eq. Cra^—

Metro Eo. Areun. .

Metro Money Can..

Metro Moo.

NeJex Deposit Cap.—

Metro Droit Are.—

Metro fncfiStK. Cap
Metro taLFvnnL Ak|

Netlndexi

Metiodrol . — — - „ ,

Next s*. day Why

NPI Pensions Manageme nt Ltd.

48 GracedwrdiSt,EC 3 P 3 HH. 016234200

Managed Fnn) --RB 49 296 ^ -■-) —

Prices May 4 . urot deaBogSme L

Natrona! Ptov id ew t InrtttaKaa.

48 , Gracedxarti St, EC 3 P 3 HH. _ 0163 4200
Managed QD 6.9 132 fl - 02 | -

Z SafrBCi: =K

SfS FraTm— Z

f*M 3 j^Z§ 7 l

_ non to —

Far East Eq.

Fixed ■ —

Cash Depose

Prapprtv

ladexLMoed Fmtf .,.1
Vanbru^i Life Assurarce
41-43 Maddox Sl, Ua W 1 R 9 LA

&£. Europe OhRsaHoro S.A.

9 , Avenue de la Uberte. Laxemtsaiira
London JVw nti FTS. s 5 W y Hse. LotaSon Wall
EC 2 M 5 TK TeL W -920 0776 Tefex 837281
EurtJpe-Otrt^ikxa J 45 . 4 Z f-ML 364 130

_ Eurotxx i n v es t men ts Ltd.

1 Athol St, Douglas, Isle of Man
UK AgeotsRS, SLMM.

Eurotax Inv. Fund — B 03 4

072733166
108 .«......| -

SSS^zzrz

IntrLTd.

Fbmd InL Fd

m

m.9

aw—

006994923

F A C Mgmt Ltd. Inv. Advisers
1 Laurence PomdneyMfH, EC 4 . 01623 4680
F&C Atomic FiSA.J gD 15 I .... I 1 .$

FAC Oriental Fd 1 ‘ ££76 J J 107

Korea Intenatlom! Trust

Fund Man.: Korea Invest. Trost Ca Ltd.

=»* “>■ ««■ "“feisa

NAV won 6 , 227 . 78 . IDR value U 558^65 23

The Korea Trust

Daehan Investment Trust Co. Ltd.

1 - 518 , .Yoido-dbrEk Yongdonspo-Kiv Seoul Korea
NAV May 15 (Woo “ 211 ) (US$ 12 . 71 )

Lazard Brothers ft Ca (Jersey) Ud.

P.O Box 108 , SL Heller, Jersey, C.P. 053437361

S Brns. Im. Cap. _.B 3 iW_ 9 /"

Bros. InL Ik.

Bros. InL Asset.f , ,

Bros. Int Asset, [SSUBB — | . — J 14 X 0

Lloyds Baafc.fC.L) U/T Mgn
P.O Bax 195 , St HeUler, Jersey. 0534 27561
Lloyds TstOVas — F 9 X 84 LAI — 4 268

Mtxt dealing Stte May 20

Uoyds Trust Glh ICT .06 9 . 07 ^ — J 13 X 1

Nea dealing date May W.

Uoyds Bank In ternational, Geneva
P.O. Bore 438 . 1211 Genera 11 (Switzerland)

ussftea=«» %s

Uoyds Bank IntemattonaL Guemey
P.O Eox 136 . Guernsey, Chanael Istaods.

Alexander Fund ] ,$1235 I —J —

Met asset retae May M.

Louis Dreyfus Commodity Fund
c/o Trustee, P.O Box 1092 , Cayman Islands.
May 14 . Valuation per nr* $ 5 , 406 . 78 .

M & G Group

Three Quays, Tower Hill EC 3 ft 68 a
Atlantic Ex. May 18 -£ 56 ? 6

AaarianEg.wSrl 2 .l 5 j 7
GoM Ex. May S_
lAreum. Units}..,

Island

(Accum Units)-. _ . J

Management MemaKnal Ltd.

Bk. d Bermuda Bldg, Bt-ruxla. 809 - 295-4000
Bd3.lna.BdPd Cz ? j *Bi 3 | — ..J —

Bda. irrti. Bd. FdL !nd 5 S 55 1200

fcrt 30 Next dealing May 7 .

Sentry Auoranee Interaattona) Ud- .

P.O. Box 1776 , Hamilton 5 , Bermuda.

Managed Fund ($ 4 X 537 4 X 591 ] j —

Signal Life Ass u ran ce Co. Ud.

Ocean Heights, (toeemway, Gibraltar. Trio 2332 .
Growth Strategies Fd~|£ 2 Jl 271 ] .....j -

Singer ft FWedteader Ua. Agent*.

20 , Conran St, EC 4 . 01-2489646

?SSffi^zl'^n:z:i &

Strategic Metiri Trust Mngrs. Ltd.

3 HU Street, Douglas, IDM 062423914

Strategic Metal Tt._isa .929 0953 ) 1 -

Stronghold M ana ge me nt Limited

P.O. Sox 315 , SL Holier. Jersey. 0534-71460

Commodity Tout (229.09 1358$ J —

V |

I

i

Suriuwst (Jersey) Ltd.

4 , HIM SL,Q(mgfcs, Isle o( Man 062423914
Copper Trust 10214 12781 .._.4 —

TS 8 Trust Fuad* (C-L)
lOWherfSL.SLHelier, Jersey (C(L 053473494
TSBSHLFund Ud.—l 9 Pfl 9 Wg .._.J 1355

Tokyo Pacific Holdings N.V.

InUmta Management Co. N.V., Curacao.

NAV per son May 17 $ 85 . 77 .

Tokyo Padflc HMg*. (Senbowd) N.V.
Inthnis Management Co. N.V, Curacao.

NAV per share May 17 . $ 6259 .

Tyndafi Emu
2 Hew SUSLHeBra, Jersey.

l

*L C. Tyrre* ft Co. (Jersey) Ltd.

P.O. Box 426 , SL Heher. Jersey, C.l.

Onae 1 - $10.00] .... ( -

Prm on feril :

Vanbrugh Ptoion Limited
41 - 43 , Maddox SL, Ido. W 1 R 9 LA

& 5 £-c 5 -SiE

Prop. Pea. Acc. ,

prices are hr life _.

teutons Senes B, May 1 L Oder prices on request

Scottish Amicable Investments.

P.O. Box 25 , Craigfortfc Stifling. 07863141

0104

FMeftty hriarnational.

“.r 2° sjra n “*■ SL - *•

pxw In terest f

Index LuiterfGiftZl'pfi .9

Guaranteed. 1 1237

Windsor Life Assar. Co. Ud.

_ Boyal Albert Hse., Sheet SL, Windsor 68144
"1 _ Investor II ruts..- —

OBOLw

Amertran Vais. Com*
Aintnftal

Hidbiid Bank TsL Carp. (Jersey) Ltd.
23 - 34 , Hill SL, Sl Hriler, Jersey. 0534 36281

Sf« SUKezfiii x)ti-53W

Minerals, Ops Res. Shn. Fd. hac.

PO Box !S 4 , £l Hriwr, Jersey. 053427441
MORES May 13 159.51 931 ] \ L 2 b

Lux.

— Samuel Montagu Ldn. Agents

01-3886464

IB and

teun. Pert. Units —
Flex. lor. Growth — ,
Future Aud Growth _
ReL Ass'd Pen

Pacific

World —

American Inc. Tst_.
61 k Fund..

^^ioteres—.—.^

_ international mm

z cXHtzz::.z: uH

- JSEyiS^-B*

EaamtltEq.lriL W 5 ,

Do.Arean ffl 03

Eraapl IntaL iriil — 9 U

Do. Areu" 979

ExempL Prop. Ink. .. 95 0

Dp. Are ant.~

Exempt Cadi irit — . 9 b .9

Oo.Acqm JB .7

Exempt Man. Mt— M 7
Do.Accsn. .. — — -fioiz

OFFSHORE AND
OVERSEAS

*PrtCK at AprJ 30

Ftemtog Japan Fund S A.

37 , rue Notre-Oame, Luxembourg
FtemlngMayll f 35063 J + 03 ) -

Frankfwt Trxttt bnrestment— GmbH
Wieseuaa 1, 06000 FranWun

FraritfLBfiirFdrjSlS^ » 5 ^+ 0 ^ —

Adfe Investment

Pestfach 708 , 8000 Muntdi 1 . Telex 524269

j^kteto- — — jBSa nr'

Fondalt_:ZZ— .

Foorfa

ARsmv Fund Mananemcnt Limited
AfcwSF±(c'i) Hrtl ^iraW 176 UM ° S3 ! 7 !S ®* T - Management (U.K.) Ud.

FKe World Fund Ltd.

Butterfield Bldg, Hamilton, Bermuda.
NAV March 3 L I $ 149.86 I

teirEast

Property

indexed Gift.—,

Deposit

WZJWE. ra. in»n.. — i—j^g

fSSgSSSfc®

ssa'&szfe

Fixed 1 «-Fd. Incm - «8

e*aflsL— «|
ESeWU 1B=&|

l3v.TsLFd.loa- —

Inter i. RL !*a-— -DSf

iSISKzzSf?

BrewTMquilyM— ^
SirawtBC/w.ra..-..- J''?
^autert Man. Fo — n*-'

825

-oy

132.5 —09

ivi Zoj\

l ^

VfU

150 J -*. a
145.0 - 2-1 SJS

172-51 3

MO

|XIW

S«!— zffil

M. Inftiri

E»emo( Cam lnlL~_ 1427
Do. Accuoi. ^ 1 M -2

Exrot Etpy. "* — ^-7
Do. Accum. l ??41

UU -KU

4.30

jam -

_

idid +?J
170 .*

10511 .

lout 10.71

255

Do.AcOttl — —y—glU
Exempt inti.

Do. Ascum. 1812

UD. Areun. — r- 77 - •£££*
Exemm taigd mil ^9
Do. Acum.— — 268 .J
Exempt teop- Irel — - I§ZV
Do. ACOHtt

UKE^fefil

Overseas Eatawi

Americs IrSfial

Americas Aeon —

Far East IrdUal

55 ffise=l

ffflBWz

Fixed ML A corn —

BStifileSt;

Deposit Iritlri

Deposi t Aco ua — .

New Zealand Sth. Brit taw. PW
HaMaMUltwe. Southend SS 12 JS 070262955

S co tt ish Mutual Assurance Society

109 SL Vincent SL. GJawwi
Flex End April 13 -— OS J
tea Mqgd. Apr. 30 -P 273

Scottish Widows’ Group
PO Box '

Inv.

Jm. pul 2 Mar —

Inv. Cash Mey 14 —

Wxed Fund —

EgrttyFapJ-s

ESSESfciZ"-.

^Si F ^.zzz ^

teia Mixed n.M.imA

ggSHMtll

Pens, he- Fd. Ort._-. 07 j,

e&s&ue?

For Meander Ftod see Uoyft Barit HL ftramey.

Allen Harvey ft Russ In*. Mgt. (C.L)

041-2486321 1 Charing Crass, St Heller, Jsy,C.I. 0534-73741 AxshcrlnL Fd___

sti zd z sassss^aissa-aidssi^saizzzi

AHiance taternatio e o f Dofiar Reserves GTlA s^ stroto^- 1! 1

to, rnz Sriob^raS M«fln^55 6000 StSSlS'aSSlS&.'S®: B ^$88881 t'lSiHiZ:,

- Distribution March 17 (0000371) (14 pa) S.T.Dri'xrFa
- 2JtatJ - 4 - BS5 ^ Arhutioct Securities (C.L) Ud. <a)Cc)(h)

P. 0 . Box 284 , SL Metier, Jersey. 053476077 OT.^proSnallCri.-

DoAar Mcmue TsL.._Ofl ?4 USSj-MM 14 g G-T.IechwtofflrFd...,
1*3 Inti. A EimgK_|l 3 U IfP] -AJ

£S 5 se --KI

Do, Accm — OOP -9

' “

fc&'WSt’fc

Do. Cash Fd. May 14 .

ShawTa Ufe Assurance Co. Ltd.

161-166 Fled SL. Lwi*n EC 4 20 V

OILS
P«

103
1241 _

134 o 1 _

,1434 I 50 .fl-L-.

For Prrtis ri «ipr Unhs art taMHd
Basis Rates pte? P to» 0 I-S 3 Ball

Maragrtl Acc.^

1

Pens. Euute Act;.- *

01-353 B511 uni

" 036

B.IJL Bund Investments AG
10 . arorerstrasse CK 6301 , Zug, Swteeriaod
Bearer SM. April 19 . IM 2 M 10 , 800 ] . —I -
Bank of America interna tincal SJL
35 Boutroart Boyal, Luxeaburg G.D.

aj3

Banbys Uracnrn International
1 , Dwng Cross, St. HeHer, Jersey. 053473741

gnWe |LTni'ZZ®J 0

-.JdTrua W 2.44

i.T.Aseao Growth Fd.7

- 015 ]

■I -

14.25
244
089
1.18
164
1 73
2.69
9 .U
13
134
Obi

055

144

Murray, Johnstone (inv. Adviser)

163, Hope Sl. Glasgow, C2. 041-221 5521

Hope SL April 30 I S 47 . 1 D I J —

Murray FlTApril 30 _r S7.S I ... .J —
Pacific Fuad April 30 ) 5425 J J —

Net Westminster Jersey Fd. Ilgrs. lm.
23125 Broad St, St. Heller, Jersey. OSM 70041

SifSS. p “°.:zi .1 "J 8 :.zj

iBtrroatlcHai Bonn* J56J ®oj J 931

•&*. an-erary 7 hufs.

Negit'SJL

10a Boulevard Royal, Unemboura

NAV May 10 (3953 — 1 \ —

■WMPfi 11

Uhxlon- I n mtM ieH t - G e i ellscfaoft mbM
Postfach 16767 , D 6000 Fnridurt 16 .

Ucdfeods.

Urinit—

Urlrema.

V.CJL Ftanebl Management Ltd.

42 , Esrex Street. London, WC 2 . 0 L 4 S 36 B 4 S

Vbnfaragh Fond Mngmt. httL Ltd.

28-34 HIM Sl, St HHier.Jeney. 0534 36281

Varixu* Cwreaqr F 4 J 1072 107 44 + 0 . 9 ] 838

S. G. Warburg ft Co. Ud.
30 , Grata Street, EC 2 .

01-6004555
?95

Warburg tnresL Mngt Jrsy. Ud.

7 Utarary Place, SL Metier, Jsy. Cl 053437217

"" ^ 141

Do. AM- Mfe- J 76

Do. Grtr. tedfic 120.5

Du inti. Insane „E 9 ,S

Do. lsleolM»T *.„633
Do. Mam Mutual (493

Gartmore Invest. Ltd. Ldn. A gts.

Z SL Maty Axe, London, EC 3 . Pl -283 3531

Gartrnore Fori Itauagan (C-L) Ud. la) (hi .
417 Broad sCsi-Heto; Jersey. „ 0534-73741

GliFond(Srseyi_| 8 ii» 96 Q] 4 1190

tor t i— r c Frad Hansen IFxr Earn Ltd. (aKhi
1503 Hutihiao ibe.. 10 Hacewt Rd. H. Kopg

Australia Tst 03530 5.7501 130

HKl Pac U. Tn ;. 5 ri 2 ... ZbO

JmanFd. ^333 22 l 52 w-lLii 0 x 9

OiTKriconTsL — ffim 214341 . .. . ObO

Inti. Bond Fund ^0631 112991 ... .1 560

Eartmure Firid Managers IRHD (a)

P.O Box 32 Douglas, Isle of Han TeL 0 b 2 fl 2 y-n
Gartmore Inti, 206 s 8 ... -I 16.00

H.E.L. Interaatkmai Ltd.

P.O Box 119 , SL Peter Pori, Grarasey, C.I.

Sterling Deposit- K 1.1 64 . f

Stertog FumJlrerrest. p 98
Steri^gManaged — K 7.9
Irel. Fised Interest. ,.| 7 Zo
Intid. Managed - '

Nortfcgaie tfirit Tst. Mngrs. (Jersey)

P.O Box 82 . Sl Hdier. Jersey. 0534 73741 .

Pacific Fd. May 6 — 13995 10561 .| —

Pacific Basin Fund

10s Bodies an) Royal, Luxembourg.

WAV .J S 1B.0D f-03% —

lo». Adv.: 11 . 4 1 hti lino, LUL, Loodca

PtweHx International

PO Bo* 77 , Sl Peter Port, Guem. 0481 26741

tt

WartHey famstorent Services Ltd-

4 th Floor, Hntchhon Horae, Kong Kong

H&rSfy Japan Trost .J

World Wide Growth Manage m e nt ^
lOp, Boulevard Royal, Luxembourg
. Worldwide Gth M I
ton. Adr.: M- & O Im.

WLut«Lr

Gartmore Ini!. Grtli..

DAO

_ AKkafedoni GENERALI S.pJL

1 DJD P O- Bos 13 ?. SI. Prier Port, Goertwy, C.l.

, SBem£!HSBa:.-i =

Inter-Dotiar Fund....

Far East Funo

ImJ. Currency Fund...

Dollar Fxd. IitL Fund.

Stcr. Exempt Glh Fa.

Ptwedeca Capitol International LM.

PO Box 121 , SI Peter Pun, Guernsey 0481 2672619

UKS'OckmBtfcel f

(ntf. SfdCblWftet f

Worhi TKhmdog* . . . . f
N. Am. Sloctmariteuf

'FcrEasl ,'S

UKFisnltmeresi ..— 1

Inti. Fueo InL 5093

Inti. Currer,c»_ ._jS 093

UK Money Maritet ,_.K .93
Irtl. Mwey Mar 1 («_p.g

Slid. Weflud. Fd. Kps

Do<Ur Jpxnrf Fd — |S0.B

usaw! life Of mtemt li<

Pw, a: May 12 . Nnt deahug

Wren CooumdHy Management Ud.
lO Sl George’s ft- DourtastaH 062425015

Wren Corn. Fund-, 093 408 ) J 6.60

M 1 ,J0

^SSSfGSn S&l

Wren inti. Fed." 00927

NOTES

Priee* an hi petov mriec otherwise indicated and
ti«e designated S with no prefix refer to U. 5 .
(Wars. YMN % (tfBWflln last « 6 irrtn)aHow for all
Mflfmg expenses, a Offered orices riclmfe all
eposes, b Today's prices, c Yield based on offer
l*ice. d EstimMed. 1 Todays opening price
h Ostnixaion free 3 UK taxes, p Periodic
premiuni Jnsnnftt Mam., s Single prrmltn
nsuraocr. x Offered Brice iactudes all expense*
mag* agent’s nmtoiaL]> Offered price Inriudm
WtatolxtfewriniHiageroZ Prerious
jn ss. p Suspended.
6 YieM before Jersey fox. f Ex-sute&vrtloo
t$ Only available to charitable bodle^^

Industrial & Commercial

Contact

LANGFORD-ALEXANDEF
ADVERTISING
6. George Road,Edgbaston
Birmingham B151NP

021 4559696

FT SHARE INFORMATION SERVICE

LOANS— Continued BANKS & H.P._Cont. CHEMICALS, PLASTICS-Cont.

Stack j MuTtl I Stack | Wn B' |cw|K|hE «|b*Lw| Stack j Pms | + -i Set | Or (&?(?£

Financial . bs 73 omntKnr*&p. 79 +1 4.93 lsi b.9W2)

.100 I9S1.IFFI14PC-83 _|. 100 hlM *97 7 g £ j « “ = « =

733 B46 *%9 WO C'hgitHblcKrlOO 900 9015% - 114 -

1177 1440 * 4 tares (G. Rj... 5‘ ...... — — — —

1267 13,85 £fi®a £6 ®j DaSd*Ba*MHL £671* Q31W — 52 —

Financial Times WednesdayMay id 1982
: FOOD, G R0CEF51 ESr^CoriL

*2%.! « ' WSI

ti

I Do. 14*ipc 4.4.83 ...|

lg 1 14231 1 A 10

FOREIGN BONDS & RAILS Eb,

1982 t | Me* |+ ir low. % I Bed. »s

IHgh Low | Stack { £ | - | firms [ YitM 170

I 80 t I *1010133

Excti. 12Wc 1999

TtX;

TTt

S3

a

3

SH

*51

ri

1

228
375

15

23
43
446
66

16
294
22
105
66
62
132

*

3

m

980
4.7 240
9M 48
49 83

8 3

“ 3

»i3S

- £21

- 284

« 49

W 43
i .8 62

f* 230

3.4 21

MZLfl- 60
— 28 5M
13.4-5?
42 48 193
J 02* 35

4.9l — it,

- 54

- UO

M> 100

90pl 174dl-2 | 8.0

30
212
172-
85
150

W 1

33

Prince of Waist 57

£g?

138
6
214
64
127
370

WaB®r(J».)

ag&Gillow

LOANS

Public Board and Ind.

57\ lAaric. MI.5PC '5*>-89
iktji.wtr 3nc ' B’ ....
«>3 K'S-mc. %ci9a? ..
94 1 Do. wiihQui Wamts

837 14.13

1036 13.06

In - 1335

5 (Cater Alien £1- f 323

X-MONEY MARKETS ■ FOREX-MONEY MARKETS -FOREX-MONEY MAR

Bigger turnover.

Bank of New South Wales - Australia's largest banking
group - has integrated the London business oi The
Commercial Bank of Australia Limited, which now forms part
of the group, with its own London operations. From 1 st Apnt
1 982. all our business transactions in London will continue
under the name of Bank of New South Wales .

The merger oi the banks in London has enabled us to
enlarge our London Foreign Exchange and Money Market
capabilities, resulting in a special combination ot experience,
expertise and resources.

Bank of New South Wales, London, is now dealing on a
bigger scale and is able to handle even more deals than
before. Active in all currencies, we are the major dealers in
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LIKUD MPs DEFECT ON EVE OF CONFIDENCE VOTE

Begin coalition faces Collapse

BY DAVID LENNON IN 1EL AVIV

THE ISRAELI Knesset (parlia-
ment) is to -hold a crucial vote
T his evening on a no confidence
motion which could see the fait
of the coalition government of
Mr ATenahem Begin. This
follows the defection yesterday
of two members of th e ruling
Likud bine to the opposition
Labour Party.

News that inflation in the
first four months of this year
reached a record histfi led the
Labour Party to table its
motion of no confidence in the
Government's handling of the
economy.

The defections have robbed
Mr Begin of his majority and
the key to the survival of the
Government is now held by
two small independent parties
which were being actively
wooed last night by both the
coalition and the opposition.

The Government could
survive if it could persuade

either of them to oppose the
motion or at least to abstain on
the vote. But if the parties
support the no confidence
motion, the Government will
fail.

The crisis erupted yesterday
when two members of Mr
Begin's ruling Likud blors said
they were quitting to joro the
Labour Party as independent
political factions. leaving Mr
Begin with 59 out of the 120
seats in the house.

Mr Shimon Peres, chairman
of the Labour Party,, claimed
yesterday that the Cty/eraznenl
could now not last long as
Labour controlled 5<V Knesset
seats compared witti the 46
held by the Likud liloc.

Mr Begin has another 13 seats
through bis coalition with
religious parties and the
ethnic-based Tani faction. The
four Communist and two
Change Party members are

likely to back the motion.

While coalition members
were predicting yesterday that
despite the defections, the
Government would be able to
survive with the support of
three members of the extreme
Right - wing Tekiya Party,
Tekiya's leader. Prof Yuval
Neeman, said: “The trend of
thought in the party is to bring
down this Government.” Taki
violently opposed Israeli with-
drawal from Sinai.

The other key party is the
Pelem Party, which has two
Knesset members. It is. headed
by Mr Yigal Hurvitz, who served
as Finance Minister in the last
government for a 'time.

The Likud has been wooing
Pelem for some time, and last
night efforts were intensified to
bring at least one member into
the coalition. If -the attempt was
successful it would be enough to

save the Government
If the Government loses the
no confidence vote today, elec-
tions are likely to be called.
However, it is possible the
President will fist call on the
leader of ■the Labour Party to
try to form a coalition "with the
existing Knesset, although it is
doubtful this could succeed.

Both of yesterday’s defec-
tors are former Labour Party
members and their return was
welcomed by the opposition.
Mr Amnon Linn was promised
a Cabinet portfolio as Minister
for Arab Affairs if Labour
formed the next coalition, and
Mr Yitzhak Peretz was assured
a deputy ministership.

Speculation has increased re-
cently about early elections as
Mr Begin's second coalition
government, formed after last
June's general election, had a
majority of only two.

Two British
companies
in £110m
Java deal

By Mark Webster

Co-op Bank in link-up with Abbey

TWO BRITISH companies,
part of an Ang'o-Swedish
consortium, yesterday said

they had signed contracts
worth more than £110m for
work on a hig hydroelectric
project in Indonesia. .

Balfour Beatty, part of the
-BICC group, will .carry out
civil engineering works worth
over £80m, and Boving, the
London-based water turbine
supplier, will provide and
instal British turbines, water
penstocks and gates worth
£31.5xn.

It is the biggest contract
'either company has won in
Indonesia. Balfoar Beatty
said yesterday it was the fndt
of close co-operation between
the companies and the British
Government on providing the
right financial package..

<ivCS

While UK investors spent
yesterday scanning the tapes
for news of battle, and the
industrial production figures for
signs of the solid recovery that '
Ministers keep talking about.
New York was digesting the
consequenc.es of a major default
by a government bond dealer.
The Federal Reserve acted —
successfully— to calm the mar-
kets; first impressions suggest •
that the failure does not stem'
from high real interest rates
or other economic strains, but
from old-fashioned speculative,
activity on an improbably large
scale.

Index fell 3.4 to 572.4

STORES!

GUS/Empire

Last day

BY ANDREW TAYLOR AND PAUL TAYLOR

CO-OPERATIVE BANK yester-
day announced that it is to pro-
vide cheque-clearing facilities
for Abbey National building
society. It is a major coup for
the society, which plans to make
cheque books available to its
6.5m investors from this
autumn.

Full details of the link
between the Abbey and the
Co-Op Bank have not been
finalised, but it is evident that
the new cheque hook accounts
will pay interest to depositors,
although at lower rates than
traditional building society
savings schemes.

Mr Clive Thornton, chief
general manager of Abbey, said
the move would increase pres-
sure on the clearing banks t»j
pay interest on current accounts.

Abbey National, the country’s

second largefi building society,
had originally asked Barclays
Bank to provide cheque-clear-
ing facilities. Barclays which
last week announced plans to
open about /400 of its branches
on Saturday mornings, rejected
the approach.

This move by Abbey will in-
tensify The struggle between
building societies and banks for
the personal savings market.

The decision by the Man-
chesber-based Co-Operation
Bank represents a major
departure — the retail banks
have so far been reluctant to
pvovide cheque-clearing facili-
ties for building societies.

It is virtually impossible for
a society to provide cheque
book facilities unless it estab-
lishes a side-by-side operation
with a clearing bank winch, un-

like the societies, is able to
maintain overdraft facilities.

The Co-Operative Bank,
which only recently Introduced
its own interest-bearing current
account scheme, has been look-
dog for ways to utilise spare
capacity at its cheque clearing
centre in London.

The deal with Abbey proposes
that the building society pays
the bank a commission for pro-
cessing Abbey cheques through
the clearing bank system.

The building society claims
that the cost of the operation
can be met from 'the nominal
savings arising from the lower
Interest which will be paid on
current accounts compared with
the rates paid on the society’s
share accounts.

Investors will be able to run

twin current and savings
accounts. The bank would be
responsible for any overdraft
that may arise. It Ls not pro-
posed that Abbey chequebook
holders would have to pay bank
charges.

Tbe major clearing banks
estimate the cost of clearing a
cheque at between 4Qp and 50p
per transaction. However The
Co-Operative Bank with its
modern clearing facilities is
believed to be able to reduce'
substantially this cost.

The Co-op has 70 high street
branches but relies for much of
its custom on its 1,000 Handy-
banks in Co-op stores and 3,600
other stores where the bank
offers cheque cashing facilities.
The . Abbey has 640 full
branches and 2,000 agencies.

The deal wan sisned before
Way 15, technical'? the last
day on which Indonesia could
benefit from a 7.75 per cent
interest rate for export
credits.

Balfour Beatty already has
other big power contracts
under way in the -Far East.
With Edmund NnttalL It is
undertaking the main con-
struction work on the Victoria
dam hydroelectric project

near Kandy, Sri Lanka.

In Hong Kong it is working
on a £100m contract for an
electrical supply system.

The Indonesian project

should he commissioned in
1987.

Most of the British finance
has been arranged by Barclays
International with backing

from the Export Credits

Guarantee Department and
the Overseas Development
Authority.

Telecom
backs cable
network

Howe attacks building societies’
election and information record

Discussion

6/ Guy de Jonqu'.eres

BRITISH TELECOM has
recommended To the Govern-
ment that Britain should build
a technologically advanced

BY ANDREW TAYLOR

national cabk* network designed
to carry both communications
services avid television enter-
tainment

Telecom's recommendations
are contained in a confidential
report to Mr Patrick Jenkin, the
Industry Secretary- They go
much further than proposals for
an expansion of cable television
published recently by the
Prime Minister's Information
Technology Advisory Panel
(ITAF). which are4jjemg closely
studied by the Government.

Telecom says that if new local
broadband cable systems costing
billions of pounds were designed
to carry television programmes
only Britain would miss a major
opportunity to lay the founda-
tions of the emerging informa-
tion technology age.

Telecom also lays claim to a
major role as supplier and
manager of future cable systems.
It suggests that responsibility
for installing and maintaining
the systems should be clearly
separated from the provision of
programmes carried on them.

The report ejgues that the
technologies of communications
and telecommunications are
converging and that Telecom
could make an unrivalled con-
tribution ta their commercial
development But to do so the
organisation would need to
devise new financial arrange-
ments free from government
restrictions.

Wiring up Britain for the
Future, Page 8

THE WAY some building
societies elect their directors
was criticised last night by Sir
Geoffrey Howe, the Chancellor.
He also reprimanded societies
for not keeping members fully
informed of policy decisions.

Speaking at the Building
Societies' Association annual
dinner in London, Sir Geoffrey
said: *‘I have the impression
the management of some
societies are too fearful of the
working ' of the democratic
process." Some managements
had sought “ to evade questions
about the policies of tbe society.

“ They seek to use the advan-
tages which the party in power
always has in running the elec-
toral process, to make it very
difficult for others to stand
against them.

"I would like to suggest they
should not be so defensive.
Thev should be . ready to
justify their policies to their
members. In particular they
should give a fun explanation
when any merger is proposed."

Sir Geoffrey's remarks reflect
recent public concern over the
way societies handle elections

THE CHANCELLOR last
night announced plans to
raise the special advances
limit which restricts the total
amount of mortgage money
any building society can make
available to higher borrowers.
He said he intends to raise
the special advances limit for
individual loans from £37,500
to £60,000—41 move likely to
be welcomed by societies
which have complained that
banks have been able to com-
pete unfairly for larger mort-
gages.

and impart information to
members.

He said: “Retiring directors
should stand for re-election on
the basLs of a justification of
the policies which a society has
pursued.

“They should make arrange-
ments to ensure the conduct nf
the election is not only fair
but is manifesi ly seen to be fair.
In other words, thev should be
ready to answer for what they
have achieved. "

Sir Geoffrey said future legis-
lation on building societies, un-
likely in this Parliament, would
need to consider the constitu-
tion of building societies.

" At present it is the investors
who in general have the vote.
But it is the staff and the bor-
rowers who are locked into tbe
society, in a way in which
investing-members generally are
not. And changes should reflect
this.” he said.

Recent annual meetings at
Nationwide and Anglia building
societies came close to uproar
when members sought to
challenge society directors on
various issues. Attempts to
depose retiring directors seek-
ing re-election, however, failed.

These two societies believe
they have been unfairly singled
out for attention. They deny
that members: opposing The
re-election of existing directors
are unfairly treated or that j
society members are not kept 1
fullv informed of policy
decisions.

Sir Geoffrey did not refer to
any individual society.

The project, costing a total
of £200m. Is in central Java
and was won by the Anglo-
Swedish consortium ahead of
a French group of companies
led by CGE Alsthom.

Sweden's Skanska Cement,
also part of the consortium,
will carry out some of the
other construction work on
the ISO MW power plant and
dam.

Balfour Beatty said It hoped
the cooperation with the
Swedish companies would lead
to more joint business-
Several projects were under
discussion.

The design of the project
has been done -by Sweeo of
Sweden and the electrical and
mechanical works will be pro-
vided hy A SEA, also of
Sweden.

A full- month after G US’s. bid
for Empire Stores; tbe Office of
Fair Trading has yet to recom-
mend whether or not the deal
should be looked at by the
Monopolies Commission. Per-
haps the OFT is simply gather-
ing all possible, evidence before
deciding. But the case for a
reference is so -plain that even
a brief delay may suggest that
it is edging towards acceptance
of GUS’s fait accompli The
fact that. GUS already holds 30
per cent of Empire, and has
another 10 .per cent tied up,
might reinforce the OFT's
inertia, as might the absence,
of any rival bidder for a com-
pany that has admitted that ft
needs help. -.

Empire’s financial weakness
is a crucial point in GUS's
favour; bids for weak companies
— like EMI, Decca or J. Lyontf-r
tend to be waved through. But
Empire is in decline rather than
imminent peril and the
recovery at Grattan (after an,
injection of GUS management k
shows that sickly mail order
companies can be turned round

Since GUS cannot pretend
that it does not have a command-
ing share of tile catalogue mail
order market it has argued that
mail order is merely “ an
integral, though relatively
small, part of the national non-
food retailing sector." The man
who tried to comer the pepper
market could have claimed to
similar effect that that was an
integral, though relatively
small, part of the world food
scene.

90 ~ relative to the II . f J'""
F.T>Actuaries
All- Share Index ' i

S5 h 1 1 1 ii i n 1 1 h ull

•1981 1982

bidders believe the GUS offer
will -be -referred they are
unlikely to risk a .joint, re-
ference-'by coming, forward too
early — though they, might make
themselves known Id the OFT.'
The OFT - might reasonably
conclude that, with or without
V ^takeover bid, GUS's' ; 30 per
cent holding already repre-
sented some sort , of merger
situation. - Its natural course is
to order GUS to divest or
.submit to .an investigation. GUS
could hardly complain— it is the
l Iast company, after all. to expect
something for nothing- .

Lloyds Bank has owed the
bulk of its profits growth to
the sparkling performance of
Lloyds Bank International over
the past two years, .so signs of
a slow down at - LBI were
enough to leave the Lloyds
share price lOp lower at 3§5p
yesterday. LBI has deconsoli-
dated its local Argentine oper-
ations, without restating com-
parisons, so the fall in reported
pretax profits to £52.7m in the
half "year to March from £70m
in. the previous. period is-.fafrly
meaningless. But asset growth
is apparently slowing as LBI
struggles to find high quality
wholesale business, while the
stagnation of fee income can-
not have much to; do with the
Buenos Aires branch.

without a balance jshjeet. ^
haemorrhage. V

- The", remaining steel assets
have been written- down to
their.net realisable value andijj
provision has been made ; for J|;
further reorganisation. in metal ’
forming. So the balance sheet .. -
at January 31 : presents a fairly - '
realistic picture of the present '

position. * The only worrying
uncertainty: surrounds grants of •' -
£3.5m,- . repayment .'of : which
Duport says, the Government is
pursuing “• remorselessly.** Un- '
fortunately for the Government*
its claim is against Duport
Steels, the disappearing sub-
sidiary, rather ban the parent.

A year ago, borrowings ,. rgssj'
represented almost three times ' ""
-Duportis ; reported net worth.

By the end of January, follow?-,
ing the- reconstruction, net’ debt -
was equivalent to only 4 S' per
cent of shareholders funds. On
-the - revenue account Duport
reported a full year loss down tiiS-
ffora £l3.9m to £325.000 pre-
tax. Tlie second, half < even
showed a preztaic profit of about '
£500,000, after adding back
redundancy posts. *

! Blit Duport still v faces %n : -
uphill struggle. Volume is very
weak in the plastics division-^*
the only real profit contributor^-! -cbO
■ — and in bedding. Grovewood
will benefit; from the closure of
its competitor -Hygena. Kitchens,
but the -group still looks . sure ‘
to m&ke-a loss -in the first half -
A payment ou the ordinary
shares, which dosed at 13p last r • ' ' ’
"night. Could; be made .two years
from now. • c

C. E. Heath

GUS could use its buying
power alDne-r-even without the
overhead rationalisation which
it would surely find irresistible
— to transform Empire’s
margins. Another bidder, inside
or outside mail order, might be
able to justify paying more than
£37m for Empire, but the
business is worth more to GUS
than to anyone on earth. *
As long as other potential

r Heath has predictably joined "
the, list of insurance brokers to • •
log a. .'solid profit Increase -over t .

the ..past, year, with pre-ta3Cr ScCfV
profits ahead 37 per cent at._.

£17m.‘ helped substantially by ”
currency- .gains. Underlying
brokerage growth was a respect- -
able . 11 per centr and expenses— - T
largely 1 non-doilar ' itmns — were .
kept under fair controL ££¥•?

• Having. had -to provide a net-
A$2m to .. strengthen- its - .

Australian workers, 'compensa- •!. .
tion reserves, Heattr -should^-'. . .
nevertheless : see further" pro-; w - .
gress in that difficult- under- ' "

Duport

writing market now that rates. ,

are hardening: .'But the reverse 1 “Ones £

After its recent string of
embarrassments. Midland Bank
can take some comfort from the
successful resuscitation of
Duport. Midland's participa-
tion in the company's capital
reconstruction this time last
year has enabled Duport - to
withdraw from steel making

are hardening: .‘But the reverse 1
is true of the.UJS. and UK,-= ...

where rate-cutting has begun --- .

to reach tbe bottom liae and is ..... ..
still accelerating. While invest- -
ment income could, be vulner-

able to lower interest rates this*,.,
year, 'brokerage growth

targeted at 10 per cent could ;
see profits up to £20 m. At 332p, --
the shares yield 5.8 . per cent.

clubs

_ .

EEC farm prices

Continued from Page 1

Continued from Page 1

British force in the South
Atlantic.

Bri. Lami Dozo had been re;
garded as the dovish member of
the junta, but speaking on his
return from Argentina's main
airbase at Comodoro Rivadavia
lie said: “ Once the British
force is located and within
range we are going o make a
massive attack."

Brig. Lami Doso’s sentiments
were echoed by the Argentine
governor of the Falklands in a
radio interview yesterday.
Declaring that his country's
airforce was ready and capable
of striking ifae British force, he
insisted the Argentine troops
already on the island were fully
prepared to defend themselves.

The British task force and its
accompanying merchant sfcrus
were declared to be on active
service on May 15. for the next
three months, the Defence
Ministry said last night.

The principal effect of active
service, which has not been de-
clared since 1966, is to bring
merchant ships and their
masters fully under the control
and discipline of tbe task-force
commandpr. Admiral John
Woodward, the ministry said.

in yesterday's vote, supporting
Mr Walker’s right to exercise
the veto in line with the
Luxembourg compromise. Both
countries also emphasised that
they regarded it as central to
their decision to join the
Omm unity.

France. West Germany and
Italy denied that the compro-
mise was dead. France's Mme
Edith Cresson and Italy’s Sig
Giu.seppe Bartolemei insisted
on having this view recorded
in the Council minutes in a
move condemned by an angry
Mr Walker as. “cynical, stupid,
incoherent and ridiculous."

The French claimed that Mr
Walker vas misapplying the
Luxembourg compromise be-
cause he was not using it to
protect a national interest in
the farm budget but to secure
an agreement on the budget
issue.

The compromise, argued Mme
Cresson, was never intended “to
allow a member state to para-

lyse the normal functioning of
the Community and in doing so
fundamentally to alter its spirit
and its rules."

Mr Walker rejected French
claims — which were supported
by tbe European Commission —
that the Council had an obliga-
tion under the Treaty of Rome
to adopt the farm package.

Stressing that British national
interests were at stake. Mr
Walker claimed that financing
the farm package would add
over £100m to Britain's EEC
budget contribution this year.

There was a strong feeling
among British officials last
night that the UK had fallen
victim to a closely coordinated
attack inspired by the Commis-
sion out of deference to French
wishes and in co-operation with
the Belgian presidency of the
Council.

The Luxembourg compromise
has shackled the Commission’s
authority in recent years, and
the Benelux countries have

always resented its thwarting of
steady progress towards more
supranational! sm.

The viev r in London last
night was that the method by
which the decision was taken
was possibly more significant
than the decision itself. The
hope was that nther EEC coun-
tries would reflect on the impli-
cations and consider a return
to the Luxembourg compromise
approach op matters of vital
national interest. Officials
pointed out. that all countries
would be affected and they
mieht regret the farm price
derision.

Mr Pym was reported to he
cautious about the Govern-
ment's response at a private
meeting of the Conservative
Foreign Affairs Committee last
night. One member said there
was widespread resentment
among MPs at the UK "being
pushed around by other EEC
countries in the way that the
decision bad heat made."

UK TODAY

TEMPERATURES near or
above normal. Sunny periods
with scattered showers.

London, SJ3., £k, N.E^ Central
N. England, Borders, Cent.
Scotland

Fog patches, sunny intervals,
mainly dry. Max 15-19C (59-
66F).

Central S., N.W-, S.W. England,
Channel, S.W. Scotland, Argyll,
Wales, loM, N. Ireland, N.

Scotland, Orkney, Shetland
Sunny jntervais, showers. Max
14-17C (57-63F).

Outlook: Brighter weather after
rain clears.

commo

S Slr *-e

WORLDWIDE

Thatcher gloom

Continued from Page 1

Government may h a vemoved to-
wards accepting the key require-
ments laid down by the British
Government: total withdrawal
and no pre-conditions in negotia-
tions pbout sovereignty.

In New York, Sr Perez de
Cuellar said yesterday be felt
Argentine needed 24 hours to
consider the British position

which had been passed to the
Secretary General by Sir
Anthony Parsons. Britain’s chief
delegate, on Monday.

In. the lasL 24 hours specula-
tion has grown at the UN that
Sir Anthony returned from
London with a final British offer
to Argentine.

The Secretary General yester-

day would not go so far as
describing Britain's position r.s
final, but acknowledged it was
very close to final.

He also claimed Argentine
had not asked for the 24-hour
suspension. "It is what I thought
they needed," he said. “If they
are ready before. I am sure they
will come back before."

Ajaccio F
Algrors C
Amsdm. F
Athens C
Bahrain S
Barclna, C
Beirut F

BeiNst s

B‘ 3/nrd. S
Berlin F
Biarritz C
Brnghm. F
Black p' I S
Bordx. C
Boulgn. F
Bristol F
Brussels C
Budpat. F
Cairo s
CardiH F
Casbce. F
Cnpo t.
CHicfl.t
Cologne F
Crwltgn. S
Coriu S

Denvorf
Dublin F
Ohrvnk. S
Ednbgh. F
Fare S

FlAfppca F

FrnnU't F
Funchal C
F

Sibrltr. S
Glajp’w C
i-'msav F
HeismH r
H. Konq S
Innshr’lj F
lnvrnBS. F
S

Iwnbul R
Je^ey s
Jo'bure s
L. Pirns, r.
Lisbon F
Locarno F
London S

Y'day
midday
"C "F

20 68 L. Ang.t C

17 £3 Luxrnbg. F

18 64 Luxor

20 68 Madrid F
35 95 Ma|orra F

20 68 Malaga S
22 72 Malta S
15 59 Mchsrr: ft

26 73 Melbne. F

22 72 MX. C.t

13 64 Miami! F
17 63 Milan S

14 57 Monu'lt F
TB 84 Moscow S

15 59 Munich S
17 63 Nairobi R

17 63 Naples F

27 81 Uaiun

26 73 Nwcstl. C
15 53 N York!

19 66 Nice F

— — Nicosia F

— — Oporto F

23 73 Oslo F
IB 64 Pari* R
23 73 Perth S
■— — Praque T

13 55 Rrtjvk. F

22 72 Rhodes S
15 &a Rio J'Ot

21 70 Rome S
K "" Sfllxh're S

? S’elwot
19 Ffi S M'rita

23 73 Sinnapi\ C

22 17 S’tinqof

14 57 Isicihm. C
1R Hi Rrraab'q S

R 42 Sydney S
79 P4 Tangior F
22 T» Tel Av|v
14 57 Tenerile F

12 W Toi , '"Wt C

13 55 Tunis S

19 fr Valencia f

18 64 Venica K

20 RH Vienna F
??. 73 Wara.iw . 5
27. 72 Zurich F
18 R4

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*1 ■ . ^V. IT V -J "

1 e p V*

the whole things
works. . ' . - ; ■ -

C— Cloudy F— Fait. R-~flaUi. S— Sunny.
T— Thundar. t Noon GMT lotncMraiuras.